Stock market today: Wall Street falls as the vise tightens from rising yields in the bond market

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NEW YORK (AP) — U.S. stocks slipped as the clamps tightened on Wall Street from rising yields in the bond market. The S&P 500 fell 0.6% Thursday, breaking a four-day winning streak. The Dow lost 173 points, and the Nasdaq composite gave back 0.

6%. A weak auction for long-term Treasury bonds drove yields up across the bond market. Yields had already been climbing following a report showing inflation was a touch higher last month than expected. Higher yields can knock down stock prices, all else equal. Oil prices eased after zigzagging through the day.NEW YORK — U.S. stocks are slipping Thursday as the clamps tighten on Wall Street from rising yields in the bond market.

The stock market has largely been taking its cue from the bond market recently, and weak results announced in the afternoon for an auction of 30-year Treasury bonds sent yields of all kinds of Treasurys higher. Higher yields can knock down prices for stocks, all else equal, and slow the economy by making borrowing more expensive.

A second economic report from the morning likewise offered both encouragement and caution for financial markets. It said slightly fewer U.S. workers applied for unemployment benefits last week than expected. On one hand, it indicates a job market with few layoffs, which means strength for the overall economy. But it could also be adding fuel to keep upward pressure on inflation.

The big jump for the 10-year Treasury yield since the summer has pulled mortgage rates to their highest levels since the turn of the millennium, and such moves could slow the economy without requiring more hikes by the Fed. Rising crude oil prices have put extra pressure on inflation since the summer, and they were volatile again Thursday. After jumping early in the day, a barrel of benchmark U.S. crude slipped 58 cents to settle at $82.91. Brent crude, the international standard, rose 18 cents to $86 per barrel.

Delta Air Lines fell 2.3% lower despite reporting stronger profit for the summer than analysts expected. It also said it’s seeing encouraging trends for bookings going into the holiday season.

 

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