Wall Street experienced another day of volatility on Thursday, as rising oil prices, falling technology stocks, and shifting bond yields kept investors on edge. The S&P 500 dropped 0.5% for the second straight session after hitting an all-time high earlier in the week. The Dow Jones Industrial Average managed a slight gain of 0.1%, while the Nasdaq composite fell 1.3%, led by steep declines in technology shares.
The price of Brent crude oil surged 4.1% to $104.28 per barrel, driven by uncertainty over the war with Iran and its impact on global energy supplies. President Donald Trump briefly calmed markets by mentioning "productive discussions" with Iran, but oil prices rebounded after his remarks. Meanwhile, the 10-year Treasury yield saw dramatic swings, rising from 5.28% to 5.35% before falling back to 5.23%. The 30-year Treasury yield also dipped after a $22 billion bond auction.
Technology stocks bore the brunt of the selloff, with Nvidia falling 2.9%, Broadcom down 4.3%, and Micron Technology sliding 4.8%. Investors remain wary of high valuations in AI-related stocks, demanding strong growth to justify recent gains. Outside the U.S., Samsung Electronics dropped 2.4% in South Korea, despite reporting a surge in quarterly profit. Most Asian and European markets also declined.
Despite the losses, some bright spots emerged, such as PepsiCo, which rose 3.7% after reporting better-than-expected earnings. Analysts noted that demand for U.S. Treasury bonds remains strong, even as yields hit multi-year highs. "Higher U.S. Treasury yields are starting to create their own demand," said Tony Miano of Wells Fargo Investment Institute.