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Bond sell-off continues on Wall Street, pushing borrowing costs higher
AP News • • business
Key Points:
- U.S. stock markets declined on Tuesday, with the S&P 500 down 0.4%, the Dow Jones falling 190 points, and the Nasdaq dropping 0.5%, amid rising oil prices and inflation concerns.
- Technology stocks, including Microsoft and Advanced Micro Devices, were significant contributors to the market decline due to their heavy borrowing costs amid rising interest rates.
- U.S. Treasury bond yields increased, reflecting investor concerns about growing government debt, with the 10-year yield reaching 4.77% and the 2-year yield rising to 4.37%.
- Oil prices surged 2.3% to $92.61 per barrel, driven by geopolitical tensions involving the U.S. and Iran, which has disrupted oil shipments through the Strait of Hormuz and contributed to inflationary pressures.
- Investors expect the Federal Reserve to raise interest rates later this year to combat inflation, which remains above 3%, with a 66% chance of a rate hike at the upcoming September meeting.
