Bond Yields Rise, Oil Prices Swing: Wall Street Drifts Lower

Wall Street drifted lower on Friday as bond yields rose and oil prices swung wildly. The S&P 500 fell 0.2% in afternoon trading, with the Dow Jones Industrial Average down 216 points or 0.4%. The Nasdaq composite declined by 0.1%.

The majority of stocks on Wall Street fell due to rising pressure from the bond market. The yield on the 10-year Treasury increased to 5.00% from 4.94%, its highest level since 2023. Higher yields slow down the overall economy, making borrowing more expensive for individuals and businesses.

The sharp increase in inflation, which is above 3% according to several measures, has pushed up bond yields. The war with Iran contributed to higher oil prices, with Brent crude reaching nearly $110 per barrel earlier this week before dropping back to $103.68.