U.S. Stocks Drop for Third Consecutive Session Amid Rising Treasury Yields and Higher Oil Prices
U.S. stocks fell on Wednesday, marking the third consecutive day of losses as rising Treasury yields and higher oil prices weighed on investor sentiment. The Dow Jones Industrial Average dropped nearly 0.8%, while the S&P 500 and Nasdaq Composite also declined by around half a percent each. The Treasury Department announced it would triple its buyback of longer-dated debt to $6 billion, but this failed to curb rising yields; the 10-year yield climbed to 4.84%, nearing levels not seen since November 2023. Analysts noted that expectations for a larger repurchase had been higher and pointed out an unusual standoff between extreme equity market sentiment and bullish interest rate views. Meanwhile, oil prices rose due to escalating U.S.-Iran tensions, with Brent crude reaching its highest close in months at $101.21 per barrel. Analysts warned that further price increases could intensify pressure on already strained financial markets.
Topics: Dow Jones Nasdaq Composite oil prices S&P 500 Treasury yields