Wall Street Staggers Amid Bond Market Pressure and Oil Volatility

The US stock market experienced a shaky day of trading on Thursday, with stocks ending roughly where they began. 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 has been exerting pressure on stocks, with the yield on the 10-year Treasury jumping to 5.20% from 5.11% late Wednesday. High yields slow the economy by making borrowing more expensive and undercutting stock prices.

The 10-year yield climbed through the morning, pushing stocks downward, but took a sudden turn lower in the midday hours before turning higher again. The price of Brent crude oil also experienced volatility, dropping from $102 to around $99 in minutes before rising to settle at $100.22, up 2.1% from the previous day.

The strong US economy is supporting yields, with fewer workers applying for unemployment benefits last week and expectations for growth strengthening. This could convince the Federal Reserve that the economy can withstand more interest rate hikes, which would further slow growth and reduce inflationary pressures.