Stocks End Shaky Day Near Break-Even as Bond Market Pressure Mounts
New York (AP), The US stock market had a shaky day on Thursday, but managed to end roughly where it started. The S&P 500 finished nearly flat, with a less than 0.1% drop, while the Dow Jones Industrial Average fell 161 points or 0.3%, and the Nasdaq composite added less than 0.1%. This comes as the bond market continues to put pressure on stocks, with the yield on the 10-year Treasury jumping to 5.20% from 5.11% late Wednesday.
The high yields are slowing down the overall economy by making borrowing money more expensive and undercutting prices for stocks and other investments. The yield on the 10-year Treasury has been following the track of oil prices, which have been scattershot due to uncertainty about when the war with Iran will allow crude oil to flow freely again from the Middle East.
The price for a barrel of Brent crude dropped from $102 to roughly $99 in midday hours on Thursday before rising to settle at $100.22, up 2.1% from the prior day. This volatility has contributed to the high yields and pressure on stocks.