On Friday, stock markets experienced a decline in response to a significant increase in the 10-year Treasury yield, which raised broader concerns about the state of the economy.

The S&P 500 recorded a 1.26% loss, closing at 4,224.16, marking its first week of losses in the past three weeks.

Similarly, the Nasdaq Composite saw a decline of 1.53%, ending at 12,983.81.

The Dow Jones Industrial Average also dipped by 286.89 points, equivalent to 0.86%, concluding the session at 33,127.28. American Express contributed to the Dow’s drop following a mixed earnings report.

The benchmark 10-year Treasury yield crossed the 5% mark for the first time in 16 years on Thursday, CNBC reported.

This level has the potential to impact the economy by increasing interest rates on mortgages, credit cards, auto loans, and more.

Additionally, it provides investors with an attractive alternative to stocks.

The 10-year yield briefly reached 5.001% around 5 p.m. ET on Thursday, the first time it had surpassed this threshold since July 2007, before retracting slightly throughout Friday.

Written by staff