Bond Market Volatility Triggers Global Stock Market Turbulence

Global stock markets experienced turbulence on Thursday due to fluctuations in the bond market. On Wall Street, the S&P 500 rose 0.2% and snapped a three-day losing streak after U.S. bond yields increased but later gave back their gains. The Dow Jones Industrial Average added 21 points, or less than 0.1%, while the Nasdaq composite inched up by less than 0.1%. However, European markets were more severely affected, with stock indexes plummeting 1.7% in London, 1.6% in Paris, and 1% in Frankfurt.

The bond market's sharp moves are attributed to concerns over high inflation, rising oil prices, and governments' continued spending exceeding their revenue. The yield on the 10-year U.S. Treasury reached its highest level since 2002, at 5.34%, but retreated to 5.23% later in the day. Despite this, the bond market remains volatile.

The tech sector provided a glimmer of hope for Wall Street, with optimism surrounding artificial-intelligence technology driving stocks like Micron Technology and Nvidia higher. Micron's stock surged 3% after delivering a stronger-than-expected profit report, while Nvidia added 1.1%. Accenture also saw significant gains after reporting stronger profit for the latest quarter than analysts expected.