Volatility Grips US Stocks as Bond Market and Oil Prices Weigh In
US stocks experienced a volatile day of trading on Wall Street Thursday, with several sudden reversals before closing roughly flat. The S&P 500 finished nearly unchanged, while the Dow Jones Industrial Average dropped 161 points, or 0.3%, and the Nasdaq composite added less than 0.1%.
The bond market continued to exert pressure on stocks, with the yield on the 10-year Treasury jumping 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.
Oil prices also contributed to the volatility, as uncertainty over when crude oil will flow freely again from the Middle East sent Brent crude prices fluctuating between $102 and $99 in a matter of minutes before settling at $100.22, up 2.1% from the prior day.