US Stock Market Slides Amid Rising Oil Prices and Treasury Yields
The US stock market declined on Thursday due to rising oil prices and Treasury yields. The Dow Jones Industrial Average fell by 198.63 points, or 0.38%, to 52,182.03, while the Nasdaq Composite dropped by 138.04 points, or 0.53%, to 26,115.30. The S&P 500 declined by 32.33 points, or 0.42%, to 7,604.03.
The increase in oil prices above $100 a barrel has contributed to higher levels of inflation and higher interest rates, making it challenging for equities. The Treasury yields reached multi-year highs, with the 10-year yield reaching 4.918% and the 30-year yield standing at 5.337%. This has put pressure on growth stocks, which are less attractive when borrowing costs rise.
Some of the major tech companies, such as Nvidia, have seen their stock prices drop due to higher bond yields making high-growth stocks less appealing. However, other companies like Charter Communications and Apple saw their shares rise after releasing new products, including a foldable iPhone Duo.