Stock market today: Wall Street falls after the bond market cranks up the pressure again
Stocks fell on Wall Street as the pressure cranked higher from the bond market again
NEW YORK — Stocks fell Thursday to break one of Wall Street’s longest winning streaks in two decades after the pressure cranked higher from the bond market.
The S&P 500 sank 35.43 points, or 0.8%, to 4,347.35. The Dow Jones Industrial Average dropped 220.33, or 0.6%, to 33,891.94, and the Nasdaq composite lost 128.97, or 0.9%, to 13,521.45.
Stocks had been higher earlier in the day, and the S&P 500 was on track for a ninth straight gain, which would have been its longest winning streak in 19 years. But the stock market quickly sagged under the weight of rising yields in the bond market.
Treasury yields rose in the morning after a report suggested the U.S. job market remains remarkably solid. They climbed further when the U.S. government announced the results of a sale of $24 billion in Treasury bonds. And then they spurted higher after Federal Reserve Chair Jerome Powell said the Fed “will not hesitate” to raise interest rates further if it feels high inflation is not fully under control.
The 10-year Treasury yield, which is the centerpiece of the bond market, rose to 4.63% from 4.50% late Wednesday.
High rates and yields have been the main driver for the stock market for months because they hurt prices for investments, slow the economy and raise the pressure on the financial system.
A swift rise in the 10-year yield that began in the summer earlier knocked the S&P 500 down by 10% from its peak for the year. The yield briefly topped 5% to reach its highest level since 2007, as it caught up with the Federal Reserve’s main interest rate, which is above 5.25% and at its highest level since 2001.
Last week, though, investors took comments
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