Rising Treasury Yields Weigh on Stocks Despite Oil Pullback
Major US indexes slipped as long-term yields climbed, while traders prepared for inflation and jobs reports later this week.
US stocks ended lower Tuesday despite a pullback in oil prices. The Dow fell 0.26%, the S&P 500 lost 0.17% and the Nasdaq slipped 0.09%.
The 30-year Treasury yield touched 5.62%, a 24-year high, while the 10-year yield stood at 5.25%, its highest level since 2007. Art Hogan of B. Riley Wealth Management said energy prices had eased but yields had not, leaving higher borrowing costs as a headwind for investors.
Investors are awaiting the Federal Reserve’s preferred inflation measure, due Wednesday, and official jobs figures on Friday. The New York Fed president said the central bank did not need to raise rates urgently, though another increase may be needed late this year.
Oil reversed course after its jump Monday. The source cited hopes for progress in talks with Iran and reports that significant volumes were still flowing from the region. WTI fell 3.48% to $89.38 a barrel, while Brent dropped 2.56% to $102.59.
US consumer confidence also fell sharply in September, reaching a level last seen in 2014. In Europe, London and Paris closed lower, while Frankfurt posted a small gain.
This article was produced with the help of AI technology.
Source: Yahoo Finance
