Stocks slide, Treasury yields rise after Powell says Fed will 'carefully' weigh next steps: Stock market news today
Stocks fell throughout the afternoon on Thursday, as Treasury yields marched higher and investors digested a speech by Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average (^DJI) was down about 0.75% while the S&P 500 (^GSPC) fell nearly 0.9% and the Nasdaq Composite (^IXIC) led the losses, falling almost 1%.
Treasury yields climbed for the fourth day in a row, keeping up the pressure on stocks, as investors kept a wary eye on developments in the Middle East conflict.
The benchmark 10-year yield (^TNX) closed in on reaching 5% for the first time in 16 years, while the 30-year yield (^TYX) hit 5.1%.Yields have now risen for four straight days.
Powell said Thursday that inflation is still too high, signaling that the Fed intends to hold interest rates high for an extended period of time as economic growth remains strong. In recent days, some strategists, including Mohamed El-Erian, have questioned whether it's time for the central bank to raise its target for inflation.
Read more: What a Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Investors are also watching for any potential impact of elevated interest rates on corporate performance as the third quarter earnings season rolls on.
Tesla (TSLA) CEO Elon Musk said Wednesday he was worried that higher borrowing costs would prevent customers from affording the company's electric vehicles, speaking after the company's earnings missed estimates. Tesla shares fell nearly 10%.
Meanwhile, Netflix (NFLX) shares jumped more than 16% after the streamer posted a surge in subscriber numbers and said it will raise prices in the US.
In economic data, weekly jobless claims hit their lowest levels since January, as the US labor market continues to show strength.
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