Wall St slips as climbing oil, yields amplify inflation fears
SPY•U.S. stocks fell as Brent crude rose 4.2% to more than $104 a barrel and the 10-year Treasury yield reached 5.3%. The Dow lost 0.47%, the S&P 500 fell 0.39% and the Nasdaq declined 0.55%.
1. Oil and yields weigh
U.S. stocks fell Thursday as rising oil prices and Treasury yields near multi-year highs stoked inflation worries. Brent crude futures jumped 4.2% to more than $104 a barrel, while the benchmark 10-year Treasury yield stood at 5.3%, close to its highest mark since 2002. At 11:23 a.m. ET, the Dow was down 0.47%, the S&P 500 0.39% and the Nasdaq 0.55%.
2. Earnings in focus
Big banks are due to report results in the coming week. Technology and energy are expected to lead quarterly earnings growth, with S&P 500 profits seen rising 30.6%, according to LSEG data. Federal Reserve Governor Christopher Waller hinted that additional rate hikes would likely be needed to lower inflation to the Fed’s 2% target, while noting flexibility about their pace.
3. Stocks move individually
Starbucks fell 3.3% after media reports that it explored a takeover of Chipotle Mexican Grill; Chipotle shares rose 6.6%. Palantir climbed 2.9% after Goldman Sachs upgraded its rating to “buy” from “neutral.”
