Stock market today: Dow, S&P 500, Nasdaq trims losses as hopes of Hormuz deal offset rising bond yields
US stock futures and global shares fell initially as surging Treasury yields and rising oil prices troubled investors. The 10-year Treasury yield hovered at 19-year highs, rising 16 basis points during the week amid federal rate-hike bets. Wall Street faced a lower open driven by Middle East uncertainty and oil gains. Major indices subsequently trimmed losses, climbing back toward par as markets awaited upcoming talks between Trump and Xi Jinping. The Dow was headed toward its fourth consecutive losing week.
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- ✓ The 10-year Treasury yield is hovering at 19-year highs, up 16 basis points for the week.
- ✓ China's Xi Jinping landed in the US as global markets awaited Trump-Xi talks.
- ✓ US stock futures dropped as yields climbed further and oil prices rose.
- ✓ The Dow is headed for its fourth straight losing week.
What changed
Stock futures trimmed their earlier losses and climbed back toward par after initial sessions pointed to a sharply lower open.
Live updates
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US Stock Indices Trim Losses as Bond Yields and Oil Weigh on Markets
US stock futures and global shares fell initially as surging Treasury yields and rising oil prices troubled investors. The 10-year Treasury yield hovered at 19-year highs, rising 16 basis points during the week amid federal rate-hike bets. Wall Street faced a lower open driven by Middle East uncertainty and oil gains. Major indices subsequently trimmed losses, climbing back toward par as markets awaited upcoming talks between Trump and Xi Jinping. The Dow was headed toward its fourth consecutive losing week.
Why it matters
Rising Treasury yields and escalating oil prices create heavy pressure on equity valuations by increasing borrowing costs and stoking inflation concerns. Concurrently, geopolitical tensions in the Middle East and diplomatic developments involving Chinese President Xi Jinping traveling to the United States and meeting with Trump heavily influence trader sentiment. These converging macroeconomic factors create volatile trading conditions across major indices like the Dow, S&P 500, and Nasdaq.
What is confirmed
- The 10-year Treasury yield is hovering at 19-year highs, up 16 basis points for the week.
- China's Xi Jinping landed in the US as global markets awaited Trump-Xi talks.
- US stock futures dropped as yields climbed further and oil prices rose.
- The Dow is headed for its fourth straight losing week.
Still unconfirmed
- Market losses were trimmed due to potential hopes of a Hormuz deal offsetting rising bond yields.
What to watch next
- Developments from the Trump-Xi talks
- Further movements in 10-year Treasury yields and oil prices
- The official closing results for the Dow's fourth consecutive week of losses
confidence 95%Sources used for this update (7)
- Yahoo Finance — Stock market today: Dow, S&P 500, Nasdaq futures slide as bond sell-off troubles markets, China's Xi Jinping lands in US
- Bloomberg.com — US Stock Futures Drop as Yields Climb Further, Oil Rises
- AP News — Global shares mostly lower as oil rises and markets await Trump-Xi talks
- Reuters — Wall St set for lower open as oil gains on Mideast uncertainty, eyes on Trump-Xi talks
- WSJ — Stocks Climb Back To Par
- CNBC — Stock futures are little changed as Dow heads for fourth straight losing week: Live updates
- finance.yahoo.com — Dow set for fourth losing week as Treasury yields surge
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