US Stocks Waver Under Bond Market Pressure as Oil Prices Continue Rise

The US stock market continued its waver on Thursday under pressure from the bond market and oil prices. Despite a small increase in afternoon trading, the S&P 500 was still down for the day after slipping throughout the morning. The Dow Jones Industrial Average dropped 145 points, or 0.3%, while the Nasdaq composite remained mostly unchanged.

The higher yields in the bond market are making borrowing money more expensive for everyone, including individuals and businesses. This is slowing down the overall economy and undercutting prices for stocks and other investments. The yield on the 10-year Treasury climbed to 5.14%, its highest level in years, from 3.97% before the war with Iran sent oil prices higher.

Helping push up oil prices is the ongoing conflict between Ukraine and Russia. Brent crude rose another 1.8% Thursday to $99.84, easing from a bigger jump earlier in the day. This increase has contributed to higher average gasoline prices, reaching $4.48 per gallon, according to AAA.

Despite these challenges, US companies continue to deliver strong growth in profits, which has helped their stock prices remain relatively strong. Strategists at Barclays noted that as long as AI-related investment and consumer spending continue to beat expectations, the economy and markets seem capable of absorbing tighter central banks and higher rates.