U.S. stocks closed lower on Thursday as Treasury yields climbed, as investors digested remarks from Federal Reserve Chair Jerome Powell that more interest-rate hikes may be needed. The Dow Jones Industrial Average DJIA, -0.75% finished down around 0.8%, while the S&P 500 SPX, -0.85% fell 0.9% and the Nasdaq Composite COMP, -0.96% dropped 1%, according to preliminary data from FactSet.
Powell said Thursday the Fed is “attentive” to recent economic data showing resilient U.S. economic growth and demand for labor, a trend that could lead to more rate hikes if it continues. The S&P 500 and Nasdaq each booked a third straight day of declines, FactSet data show. In the bond market, the yield on the 10-year Treasury note rose 8.5 basis points to 4.987%, the highest since July 20, 2007 based on 3 p.m. Eastern Time levels, according to Dow Jones Market Data.