More swings for bond yields shake up Wall Street
Global stock markets experienced volatility as bond yields fluctuated, particularly in Europe where French government bond yields saw significant swings. While U.S. markets remained relatively stable, concerns over inflation, oil prices, and government spending continue to pressure global financial stability.
Why it matters
Rising bond yields increase borrowing costs, which can slow economic growth and negatively impact equity valuations worldwide.
NEW YORK - More swings in the bond market rattled stock markets around the world on Thursday. On Wall Street, the moves were relatively modest after U.S. bond yields cranked higher but then gave back the gains later in the day. The S&P 500 rose 0.2 per cent and snapped a three-day losing streak. The Dow Jones Industrial Average added 21 points, or less than 0.1 per cent, and the Nasdaq composite inched up by less than 0.1 per cent. The moves were more dramatic in Europe, where stock indexes tumbled 1.7 per cent in London, 1.6 per cent in Paris and 1 per cent in Frankfurt. They were hurt by sharp moves for bond yields on that side of the Atlantic.
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