US stocks market: S&P 500, Dow falls as Treasury yields rise, investors digest inflation data
Wall Street's main indexes closed lower on Thursday after a U.S. Treasury auction sent bond yields higher while investors were already digesting data that showed consumer prices rose more than anticipated in September.
Surging shelter costs pushed consumer prices higher last month while the annual increase in the core figure, excluding volatile food and energy components, was the smallest in two years.
After the data, the S&P 500 spent the morning zig-zagging between red and green.
It turned decisively lower after a 1 p.m. EDT (1700 GMT) auction of 30-year U.S.
Treasuries met weak demand.
«The biggest overhang to the market the last two months has been the rise in interest rates. Any meaningful move one way or the other on any given day is going to have an impact on equities,» said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
After Thursday's auction «the magnitude of the move higher in rates caused a significant downward dislocation in equities across the board,» James added.
The Dow Jones Industrial Average fell 173.73 points, or 0.51%, to 33,631.14, the S&P 500 lost 27.34 points, or 0.62%, to 4,349.61 and the Nasdaq Composite dropped 85.46 points, or 0.63%, to 13,574.22.
U.S.
benchmark 10-year yields rose after the inflation data and climbed further to hit a session high after the auction. The benchmark yield rose as high as 4.728%, its highest-level since Friday after falling for the last two days.
Among the S&P 500's 11 major industry sectors, the biggest decliner was materials, ending down 1.5%.
