Wall Street ends lower as oil spikes and the benchmark Treasury yield breaches 5%

Live updates

1. 2h ago

   US Markets Recover as Oil and Treasury Yields Retreat

   Wall Street rebounded on Thursday after a sharp sell-off caused by spiking oil prices and a 10-year Treasury yield that breached 5%. The Dow Jones Industrial Average and S&P 500 had previously hit three-month and one-month lows respectively following a Federal Reserve interest-rate increase. Recovery was driven by easing oil prices, dipping Treasury yields, and solid labor data. While US futures showed gains, Asian markets traded mixed as investors continued to monitor AI stocks and energy costs ahead of further Federal Reserve activity.

   Why it matters

   The 10-year Treasury yield's rise above 5% is the first time this has occurred since 2023. This movement reflects investor anxiety over mounting inflation and government borrowing needs. Markets are currently highly sensitive to the Federal Reserve's rate decisions and AI safety concerns.

   What is confirmed

   • The benchmark 10-year Treasury yield breached 5% for the first time since 2023.
   • Wall Street indices ended lower before rebounding on Thursday.
   • The Dow Jones Industrial Average reached a three-month low on Wednesday.
   • The S&P 500 recorded its lowest closing level in more than a month on Wednesday.
   • Asian shares traded mixed as markets monitored AI stocks and oil prices.

   Still unconfirmed

   • AI safety fears contributed to the retreat of Dow, S&P 500, and Nasdaq futures.
   • Mounting inflation and borrowing needs caused the US 10-year Treasury yield to breach 5%.

   What to watch next

   • The next Federal Reserve interest-rate decision
   • Further movement in the 10-year Treasury yield
   • Upcoming AI-related stock performance
   Sources used for this update (17)

   1. AP News — Asian shares trade mixed as markets continue to watch AI stocks and oil prices
   2. CNBC — Stock futures are little changed as traders eye rising oil prices and rates: Live updates
   3. Bloomberg.com — Asian Stocks to Fall on AI, Key US Yield Tops 5%: Markets Wrap
   4. WSJ — Stock Market Today: 10-Year Yield Above 5% With Dow Futures Lower — Live Updates
   5. Yahoo Finance — Stock market today: Dow, S&P 500, Nasdaq futures retreat ahead of Fed meeting amid AI safety fears
   6. WSJ — U.S. Stocks Down as Oil, Yield Shock Continues
   7. Reuters — Wall Street ends lower as oil spikes and the benchmark Treasury yield breaches 5%
   8. Bloomberg.com — Treasury Yields Stay Elevated as Stocks Fall Before Fed
   9. Investor's Business Daily — Market Falls Broadly; What Stocks Tend To Do Several Months After The Fed Hikes Rates
   10. Yahoo Finance — S&P 500, Nasdaq, Dow End Lower As Investors Price In Rate Hike Ahead Of Fed Meeting — AMZN, META, MU, TSLA, PLTR In Focus
   11. CNBC — Stock futures are little changed ahead of pivotal Fed rate decision: Live updates
   12. BBC — How rising bond yields impact American consumers
   confidence 90%