U.S. stocks fall as Treasury selloff drives 30-year yield to 24-year high

  • U.S. stocks closed mostly lower as the Treasury bond selloff continued despite Tuesday's decline in oil prices.
  • The 30-year Treasury yield reached 5.6206%, its highest level since June 2002, while the 10-year yield climbed to 5.293%.
  • Energy costs, fiscal concerns and signs of a stronger economy increased expectations for further Federal Reserve rate increases.

U.S. stocks finished mostly lower Tuesday as a deepening bond selloff pushed the 30-year Treasury yield to 5.6206%, its highest level since June 2002, and the 10-year yield to 5.293%, near its highest level since June 2007. Higher energy costs linked to the Iran war, fiscal-deficit concerns and signs of a strengthening economy raised expectations that the Federal Reserve may need to continue increasing interest rates well into next year, despite oil prices declining during the session. One closing account put the Dow Jones Industrial Average down 206.18 points, the S&P 500 down 0.21% and the Nasdaq Composite down 0.17%; a later account reported a 130-point Dow loss, a 0.2% S&P 500 decline and a 0.2% Nasdaq gain. New York Fed President John Williams said another rate increase could be necessary this year, while Anthropic's planned IPO supported parts of the technology sector.

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