Bond Yields Surge, Wall Street Turns Lower
US stocks moved lower on Friday after an early rally lost momentum. A sharp rise in Treasury yields and mixed earnings from major technology companies weighed on investor sentiment.
The Nasdaq Composite slipped 0.1%, while the S&P 500 fell 0.2%. The Dow Jones Industrial Average also declined by around 68 points, or 0.1%, as investors remained cautious about inflation and the outlook for interest rates.
The yield on the 30-year US Treasury bond climbed to its highest level since 2007, trading near 5.26%. The benchmark 10-year Treasury yield also rose above 4.7%, reaching its highest level since January 2025.
Bond yields jumped as investors reassessed the Federal Reserve’s ability to bring inflation under control without further tightening. Fed Chairman Kevin Warsh reaffirmed his commitment to fighting inflation but also acknowledged that the central bank has no quick solution, while policymakers voted to keep interest rates unchanged.
Markets are now scaling back expectations for future rate cuts. Reduced hopes for monetary easing have weakened the excess liquidity that previously supported speculative and momentum-driven stocks.
Source : Newsmaker.id
