Treasury Yields Soar, Energy Prices Rise: US Markets Slump for Third Day

US markets are pointing to a third consecutive day of losses after Treasury yields surged to near two-decade highs this week. The 10-year Treasury yield rose to 5.14% from 4.96%, which is significant, as high yields undercut prices for stocks and other investments.

The Federal Reserve Bank of New York President John Williams hinted that another hike to the Fed's benchmark interest rate this year would be a 'reasonable way of thinking about it'. He stressed that any decision will be made based on incoming data. Meanwhile, Fed Gov. Michael Barr stated that further hikes 'are likely to be needed' to get inflation to the Fed's 2% target.

The rising cost of borrowing is affecting various sectors, particularly tech stocks, which rely heavily on access to credit for rapid growth. Marvell Technology and Intel both fell about 3%. The high-flying tech sector is also being dragged down by potential rate hikes later this year.

Energy prices are also rising, with benchmark US crude oil increasing more than 1% to $93.17 a barrel. Brent crude rose 1.25% to $99.35 a barrel. The cost for a gallon of regular gasoline in the US ticked higher to an average of $4.48 on Thursday.