Stocks Stabilize as Bond Market and Oil Prices Weigh on US Markets
US stocks ended Thursday's trading session roughly where they began, following several turns between losses and gains. The S&P 500 finished nearly flat, edging down by less than 0.1%, while the Dow Jones Industrial Average dropped 161 points, or 0.3%. The Nasdaq composite added less than 0.1%.
The bond market continues to apply pressure on stocks, with the yield on the 10-year Treasury jumping to 5.20% from 5.11% late Wednesday. High yields slow the overall economy by making it more expensive to borrow money and undercutting prices for stocks and other investments.
Oil prices have also been volatile due to uncertainty about when the war with Iran will allow crude oil to flow freely again from the Middle East. The price of Brent crude rose 2.1% to settle at $100.22, while Nvidia slipped 0.4% and was the heaviest weight on the S&P 500.
Despite the challenges, some companies continue to deliver strong growth in profits, with Stitch Fix becoming one of the latest US companies to report better quarterly results than analysts expected. However, its stock tumbled 21.6% after it said a more challenging consumer environment could hold back its revenue growth this upcoming fiscal year.