Stocks Slip as Oil Prices and Bond Yields Continue to Pressure Wall Street
Stocks took a hit on Tuesday as oil prices and the bond market continued to put pressure on Wall Street. The Standard & Poor's 500 fell 0.4%, while the Dow Jones industrial average dropped 328 points, or 0.6%. The Nasdaq composite sank 0.8%.
The yield on the 10-year Treasury climbed to 5.00% from 4.97% late Monday and briefly touched 5.04% overnight. This is its highest level in years, with the last time it breached 5% dating back to 2023. Higher yields mean that everyone from the U.S. government to households to businesses must pay more in interest to borrow money, which slows the overall economy.
According to Darrell Cronk, president of Wells Fargo Investment Institute, 'The result is a market that must work harder to generate earnings growth just as investors become less willing to pay premium valuations for that growth.'