Dow closes lower for a third straight day; 10-year Treasury yield hits 5.20%, a record since 2007

Wall Street closed Thursday with muted moves as investors kept weighing fresh signals on the Federal Reserve’s interest-rate path. The Dow Jones Industrial Average lost about 0.3 percent, marking its third straight day of declines, while the S&P 500 and the Nasdaq Composite finished nearly flat.

The main pressure on markets came from the bond market: the yield on the 10-year U.S. Treasury note touched 5.20 percent, its highest level since 2007, up 8 basis points from Wednesday. The 30-year yield also hit its highest since 2004.

New York Fed President John Williams said in London that it would be “reasonable” to expect another interest-rate hike this year. According to the CME FedWatch tool, traders now see a 71 percent chance of a quarter-point hike next month, up from 55 percent a week earlier.

Oil prices stayed elevated: WTI crude rose 3.2 percent to $95.10 a barrel, while Brent climbed 4.1 percent to $107.30, after Reuters reported that the United States and Iran have discussed a deal to reopen the Strait of Hormuz.

Among companies, Oracle fell about 4.3 percent after declaring “force majeure” on a New Mexico data-center project.

Source: Investopedia