Stocks Slump as Bond Market and Oil Prices Keep Up Pressure

Wall Street stocks continued to waver on Thursday under pressure from the bond market and oil prices. The S&P 500 rose 0.1% in afternoon trading after a morning slump, while the Dow Jones Industrial Average was down 145 points, or 0.3%, as of 1:10 p.m. Eastern time.

The yield on the 10-year Treasury climbed to 5.14% from 5.11% late Wednesday, its highest level in years and reminiscent of the 2007 peak. This has slowed the overall economy while also undercutting stock prices and other investments.

Higher oil prices have contributed to rising inflation concerns, with the price for a barrel of Brent crude increasing by another 1.8% on Thursday to $99.84. The average price for a gallon of regular gasoline has risen to $4.48 from less than $4.10 a month ago and $3.16 a year earlier.

The Federal Reserve's decision to raise its main interest rate last week in hopes of slowing the economy and removing some fuel for inflation may have contributed to the higher yields, which now suggest better-than-even odds that the Fed will hike rates twice more by the end of the year.