US Stocks Drift Lower Amid Rising Bond Yields and Oil Price Volatility

The US stock market ended a bumpy week on a cautious note, with major indexes trading mixed as bond yields rose and oil prices fluctuated.

The S&P 500 fell 0.3% in afternoon trading, while the Dow Jones Industrial Average dropped 246 points, or 0.5%, by 12:01 p.m. Eastern time. The Nasdaq composite slipped 0.2%.

Rising bond yields are putting pressure on stocks and other investments, making borrowing more expensive for governments, individuals, and businesses alike. The yield on the 10-year Treasury climbed to 5.00% from 4.94%, surpassing its highest level since 2023 early this week.

Inflation remains stubbornly high, with prices for oil, gasoline, and diesel fuel contributing to the squeeze on household budgets. Steel maker Nucor reported a higher profit margin in its steel mills business due to higher prices, but its overall third-quarter forecast fell short of analysts' expectations, sending its stock down 5.9%.