Stocks Churn as 10-Year Yield Hits 5% — US Market Wrap
The final stretch of a busy week for markets saw stocks fluctuate as bond yields climbed, while investors also faced the expiration of a large batch of options that drove a surge in trading volume. After a brief pause in the Treasury selloff, 10-year yields reached 5% on bets that oil prices near $100 could fuel inflation and prompt further Federal Reserve rate hikes. While most S&P 500 companies declined, the index edged higher as chipmakers rallied. Bitcoin climbed above $81,000. The yen trimmed its losses following a report that the Bank of Japan conducted a rate check, a move often viewed as a precursor to intervention. Wall Street also faced the quarterly event known as “triple witching,” when derivatives contracts linked to stocks, index options and futures are scheduled to expire, forcing traders to roll over existing positions or establish new ones.
The final stretch of a busy week for markets saw stocks fluctuate as bond yields climbed, while investors also faced the expiration of a large batch of options that drove a surge in trading volume. After a brief pause in the Treasury selloff, 10-year yields reached 5% on bets that oil prices near $100 could fuel inflation and prompt further Federal Reserve rate hikes. While most S&P 500 companies declined, the index edged higher as chipmakers rallied. Bitcoin climbed above $81,000.
The yen trimmed its losses following a report that the Bank of Japan conducted a rate check, a move often viewed as a precursor to intervention. Wall Street also faced the quarterly event known as “triple witching,” when derivatives contracts linked to stocks, index options and futures are scheduled to expire, forcing traders to roll over existing positions or establish new ones.