Abu dhabi: The three major US stock indices closed lower on Thursday as rising Treasury yields weakened risk appetite. The S and P 500 fell 65.29 points, or 0.85 percent, to 7,642.69, while the Nasdaq Composite dropped 263.28 points, or one percent, to 26,067.81. The Dow Jones Industrial Average declined 681.62 points, or 1.27 percent, to 52,781.43.
According to Emirates News Agency, the increase in Treasury yields is causing investors to reconsider their positions in the stock market. The higher yields, often seen as a sign of rising interest rates, have made equities less attractive compared to fixed-income securities. This shift is contributing to the sell-off in stocks as investors seek safer investment options.
The decline in these indices reflects growing concerns about the potential impact of rising interest rates on economic growth and corporate profits. As yields continue to climb, market participants are closely monitoring economic data and Federal Reserve statements for indications of future monetary policy actions.