S&P 500 ends down as Treasury yields rise and traders fret about inflation

The S&P 500 finished down on Thursday, slipping 0.58% to close at 7,591.75 points, as rising Treasury yields and soaring oil prices fueled concerns that the Federal Reserve would hike interest rates soon. Heavyweights such as Nvidia and Micron Technology suffered losses, dragging the index down. Apple, however, rose 3.6% following the launch of a premium iPhone model.

The surge in oil prices, driven by disruptions in supply routes due to the Iran conflict, elevated Brent crude by 6% to $107 a barrel, further aggravating inflation fears. As a result, yields on 10-year and 30-year Treasury notes hit their highest levels in years, negatively impacting equity valuations. Analysts noted that higher yields make business operations more expensive and burden consumers, which is detrimental to the stock market.

The previous four days have seen the S&P 500 decline by 2%, marking its steepest four-day drop since June. Sectors such as materials and information technology experienced the sharpest declines. The S&P 500 has slipped nearly 3% from its August record high, but it remains up 11% for the year.