S&P 500 slides 0.67% as yields hit 19‑year high
SkimNews Take
Rising yields, not just inflation fears, are increasingly priced into equities, suggesting the market is anticipating higher borrowing costs will persist and impact corporate profitability.
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- S&P 500 closed down 0.67% at 7,353.61, marking its third consecutive losing session.
- 30‑year Treasury yield briefly topped 5.19%, the highest level in nearly 19 years.
- 10‑year Treasury yield rose to 4.687%, its highest since January 2025.
- President Donald Trump canceled a planned attack on Iran after regional powers asked him to "hold off".
- Crude oil prices fell, with WTI June futures down 0.82% to $107.77 and Brent July futures down 0.73% to $111.28, following Trump's decision.
- Home Depot reported better‑than‑expected first‑quarter earnings, prompting analysts to note stable performance despite a static housing backdrop.
Why it matters: Investors see higher bond yields eroding equity valuations, while lower oil prices benefit consumers but hurt energy producers; the market’s reaction to Trump’s policy shift underscores the sensitivity of stocks to geopolitical and rate developments. The surge in 30‑year yields to 5.19% and 10‑year yields to 4.687% also pressures mortgage and auto loan rates, tightening consumer spending.
