US Stocks Finish Flat as Oil Prices and Bond Market Volatility Continue
The US stock market finished Thursday's trading session nearly flat, despite a volatile day marked by sudden reversals. The S&P 500 index edged down 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's influence on stocks was evident as the yield on the 10-year Treasury jumped to 5.20% from 5.11% late Wednesday, a level not seen since 2007. Higher yields can slow the overall economy by making borrowing more expensive and undercutting stock prices.
The price of oil also contributed to the market's volatility. Brent crude dropped from $102 to roughly $99 in minutes before rebounding to settle at $100.22, up 2.1% from the prior day.
Despite concerns about inflation and the war with Iran, the US economy continues to expand, supporting higher yields. The Federal Reserve may raise interest rates twice more by the end of the year, according to data from CME Group.