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[BUSINESS] · United States · 59 sources

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U.S. Treasury yields surge above 5% as strong economic data hits Wall Street FAST-MOVING

U.S. stock markets experienced a significant downturn on Wednesday as surging Treasury yields and strong economic data fueled inflation fears. The benchmark 10-year Treasury yield climbed above 5%, reaching levels not seen since 2007. This rise was driven by a S&P Global report showing U.S. business activity (PMI) hit its highest level in over five years, signaling a robust economy that may necessitate further interest rate hikes from the Federal Reserve.

Major indices retreated sharply: the Nasdaq Composite fell 1.1%, the S&P 500 dropped 0.8%, and the Dow Jones Industrial Average lost 0.7%. The technology sector was particularly impacted, with companies like Google and Amazon seeing notable declines.

Simultaneously, oil prices rebounded, with Brent crude rising 3.9% to $103.08 per barrel, adding to inflationary pressures. Federal Reserve Governor Michael Barr reinforced market concerns by stating that additional policy adjustments would likely be required to bring inflation back to the 2% target, given that current growth and labor market conditions remain strong.

Entities

Federal Reserve · Harris Financial Group · Iran · Michael Barr · Mortgage Bankers Association · Nasdaq · S&P 500 · S&P Global · U.S. Department of the Treasury · U.S. Treasury · US Treasury Department · United States

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about 5 hours ago
ASX set to edge higher as oil falls [www.finnewsnetwork.com.au]
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US stocks slide on worries about inflation [www.ironmountaindailynews.com]
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about 9 hours ago