US Markets Stabilize Despite Soaring Treasury Yields
US markets were largely unchanged on Thursday, despite some volatility earlier in the day. The S&P 500 finished nearly flat, while the Dow Jones Industrial Average dropped 0.3% and the Nasdaq composite added less than 0.1%. Stocks have slowed their rally since reaching a near-record high this week due to pressure from the bond market.
The yield on the 10-year Treasury surged to 5.20%, its highest level in nearly two decades, pushing up borrowing costs and weighing on stock prices. This has led to concerns about the impact on the overall economy, which continues to expand.
Oil prices also contributed to market uncertainty, with Brent crude prices fluctuating throughout the day due to ongoing tensions over Iran's oil exports. The US economy's continued growth and rising Treasury yields have strengthened expectations for further interest rate hikes by the Federal Reserve.