In a day of volatile trading, U.S. stocks struggled to hold on to early gains on Thursday, as investors grappled with a surge in Treasury yields alongside mixed signals on the economy and corporate earnings. The Dow Jones Industrial Average, which had surged by as much as 330 points earlier in the session, managed to eke out a modest 0.1% gain, while the S&P 500 and NASDAQ Composite both dipped, falling 0.2% and 0.4% respectively.
One of the key drivers of market sentiment was the relentless climb in Treasury yields, fueled by hawkish commentary from Federal Reserve officials. New York Federal Reserve President John Williams remarked that interest rates are in a “good place,” but also hinted at the possibility of higher rates if economic data indicate a need. Similarly, Atlanta Fed President Raphael Bostic reiterated that rate cuts are unlikely until year-end, citing a slow path to achieving the 2% inflation target.
