US stocks close lower as Middle East tensions, Treasury yields weigh
Treasury yields and concerns about rising geopolitical tensions between Iran and Israel.
With the S&P 500 coming off its biggest one-day percentage drop since Jan. 31 in the prior session, stocks opened higher in part after data showed retail sales increased by more than expected in March.
Also providing early support were gains in some financial stocks after their quarterly results, as Goldman Sachs rose 2.92% after its first-quarter profit beat Wall Street estimates, fueled by a recovery in underwriting, deals and bond trading that lifted its earnings per share to the highest since late 2021.
M&T Bank jumped 4.74% after forecasting better-than-expected annual net interest income (NII), while brokerage Charles Schwab advanced 1.71% despite reporting a fall in quarterly profit. The stocks were the three best performers in the S&P 500 financial sector.
But gains faded over concerns the hostilities between Israel and Iran could continue to flare, and Treasury yields jumped, with the benchmark 10-year U.S. Treasury note hitting its highest level since November.
«You saw a little bit of a bounce this morning because maybe people thought 'OK it sold off on Friday' in anticipation of something really bad happening in the Middle East,» said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
«All the geopolitical stuff is going to cause tension and anxiety in the market, the realization that rates are not going down anytime soon has got to be finally hitting home, that's what the bond
