The benchmark 10-year U.S. Treasury yield closed just above 4.9%, its highest level since July 2007. Higher bond yields make riskier assets like stocks look less attractive and push up borrowing costs for companies and households.
Stocks ended lower. The S&P 500 fell 1.3% and the Nasdaq Composite declined 1.6%. The Dow industrials shed about 1%, or roughly 330 points.
Treasury yields climbed further. The yield on the 10-year note rose to 4.902%, from 4.846% Tuesday.
Oil prices rose. Brent crude rose nearly 2% to $91.50 a barrel, lifted by concerns about the Israel-Hamas conflict and hopes for strengthening Chinese demand.
Semiconductor stocks dropped for a second day after the U.S. said it would curb chip exports. Nvidia, AMD and Intel closed lower.
Airline stocks pulled back. United Airlines cut its earnings forecast for the end of the year. Delta and American shares also fell.
China’s economic growth slowed last quarter, but retail sales in September were stronger-than-expected.
Meanwhile: Netflix shares rose in off-hours trading, after the company said customer growth in the third quarter was stronger than expected. Tesla stock wobbled after hours following its earnings results, which showed a sharp drop in profit.
