Bond Market Volatility Spreads Across Global Markets
The US bond market continues to cause volatility in stocks on Wall Street. The S&P 500 rose 0.4% in afternoon trading after spending most of the morning lower, at one point falling as much as 0.5%. The Dow Jones Industrial Average rose 38 points, or 0.1%, as of 1:48 p.m. Eastern.
The turbulent bond market has been affecting markets globally, offsetting optimism in the artificial-intelligence industry. Losses in Europe were significant due to a substantial jump in bond yields overnight. London's FTSE 100 sank 1.7% after the yield on the 10-year U.K. government bond leaped as high as 5.53% before falling to 5.37% and then charging upward again.
The rise in yields is attributed to concerns about high inflation, oil prices, and governments continuing to spend more than they bring in. Oil prices climbed again Thursday, with Brent crude adding 2.8% to $100.73, keeping pressure on inflation.