Stocks Plunge as Treasury Yields Soar and Inflation Fears Mount

US stocks closed lower on Thursday (Sep 10) amid concerns about inflation and rising Treasury yields, which made equities less attractive to investors.

The S&P 500 fell 0.58% to end the session at 7,591.75 points, its fourth consecutive daily decline, with heavyweights Nvidia and Micron Technology leading losses in the tech sector.

Brent crude surged 6% to $107 a barrel, contributing to inflation worries and increasing expectations that the Federal Reserve will raise interest rates next week.

Ross Mayfield, an investment strategy analyst at Baird, said yields are rising due to both Fed action and growing debt issues. 'Higher yields are a negative for the equity market,' he noted, as they lower valuations and make borrowing more expensive for businesses and consumers.