US Markets Stumble Amid High Treasury Yields and Energy Prices
US markets are headed for their third consecutive day of losses as Treasury yields hover near two-decade highs and energy prices continue to rise. The 10-year Treasury yield jumped to 5.14% from 4.96%, a significant increase that is putting pressure on stocks and other investments.
The Dow Jones Industrial Average futures slipped 154 points, or 0.54%, while the Nasdaq composite sank 0.92%. Stocks took a hit late Wednesday when Treasury yields surged, undercutting prices for stocks and other investments, and slowing down the economy by making borrowing more expensive.
Federal Reserve Bank of New York President John Williams hinted that another interest rate hike this year would be 'a reasonable way of thinking about it.' However, he emphasized that any decision will be based on incoming data.
The cost of borrowing is adding to growing anxiety about prices for everything else in the US, including gasoline, which has risen due to higher crude oil prices. The cost of a gallon of regular gasoline in the US ticked up to an average of $4.48, with diesel reaching an all-time high.