Stocks closed lower on Thursday, putting an end to a five-session winning streak, as a selloff in U.S. bonds picked up again and September’s consumer price index revealed higher-than-expected inflation. Here’s a breakdown of the key details:
Dow Jones Industrial Average (DJIA)
- The Dow Jones Industrial Average (DJIA) shed about 173 points, or 0.5%, closing near 33,631, according to preliminary FactSet data.
S&P 500 Index (SPX)
- The S&P 500 index (SPX) experienced a 0.6% decline.
Nasdaq Composite Index (COMP)
- The Nasdaq Composite Index (COMP) also fell by 0.6%.
Bond Sell-Off Impact
- The renewed selling pressure on longer-duration government bonds had a direct correlation with the stock market drop.
- Yields on the 10-year Treasury TMUBMUSD10Y experienced their biggest daily gains in over a week.
- Yields on the 30-year Treasury note also recorded significant increases.
Inflation Update
- September’s consumer-price index indicated that headline inflation was hotter than previously forecasted.
- The yearly rate remained steady at 3.7%.
This decline in stocks highlighted a recurring trend in recent weeks, where investors have shown caution towards sudden surges in bond yields that contribute to funding the U.S. economy.
