“,”author”:{“@type”:”Person”,”name”:”Karen Friar”},”publisher”:{“@type”:”Organization”,”name”:”Yahoo Finance”,”logo”:{“@type”:”ImageObject”,”url”:”https://s.yimg.com/rz/p/yahoo_finance_en-US_h_p_finance_2.png”,”width”:354,”height”:50},”url”:”https://finance.yahoo.com/”}}]}
US stocks slipped ahead of the bell on Friday, with benchmark Treasury yields on the retreat after spiking to 5% in the wake of comments by Federal Reserve Chair Jerome Powell.
Dow Jones Industrial Average (^DJI) was down about 0.2%, while S&P 500 (^GSPC) futures shed around 0.3%, both on track for a losing week after Thursday’s sell-off. Contracts on the tech-heavy Nasdaq 100 (^NDX) dropped almost 0.4%.
Stocks lost ground after Powell signaled the Fed is committed to its “higher for longer” rates stance, which spurred gains in Treasury yields. The benchmark 10-year yield (^TNX) rose briefly to 5% late on Thursday, a closely watched level not seen since July 2007.
“The underlying message is ‘don’t be looking for a bailout from the Fed anytime soon,’” Greg Whiteley, a portfolio manager at DoubleLine, told Reuters. “That gives people the go ahead to take rates above 5%.”
On Friday, the yield on the 10-year retreated from that key level, dropping to around 4.93%, as part of a broader recovery in fixed-income assets. But the “pain trade” in bonds could have further to run, even after weeks of putting pressure on stocks.
Investors looking to earnings to lift the downbeat mood have yet to find relief, despite strong financial reports. On the docket Thursday are results from American Express (AXP), Comerica (CMA), Huntington Bancshares (HBAN).
Also still weighing on shaky markets is the risk of the Israel-Hamas war turning into a wider Middle East conflict, after Israel’s defense chief hinted at a ground assault on Gaza at the weekend.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
