Wall Street Closes Lower as 10-Year Treasury Yield Hits 5.11% — Highest in 19 Years

U.S. markets closed lower on Wednesday, as the 10-year Treasury yield rose to 5.11% — its highest level in 19 years — and investors bet the Fed will raise interest rates twice more by year-end.

The Dow Jones fell 0.7%, the Russell 2000 lost 1.8% and the S&P 500 Equal Weight dropped 0.7%, approaching its lowest levels of the past three months. Software and energy held up, while chips pulled back after a six-day winning streak, biotechs fell sharply, and gold and copper miners sank on rising yields and a strong dollar.

U.S. crude (WTI) rose 1.8% to $92.16 a barrel, after five selling sessions. The yield climbed 15 basis points and the Treasury’s $70 billion auction of 5-year notes cleared at 5.033%, the highest in 20 years, while the Treasury Department’s plan to buy back up to $6 billion in long-term bonds failed to calm bond traders.

The U.S. business activity index reached its highest level in over five years, keeping the Fed in a hawkish stance against inflation. Today’s data on new jobless claims and new home sales are due; also in focus is today’s Trump–Xi summit at the White House.

Among notable stocks: Palantir rose 3.7% to $191.79, flashing a buy signal, and Datadog gained 1.6% to $251.49.

Source: Investor’s Business Daily