Wall Street's Worst Week In A Month Ends With More Losses

Wall Street racked up more losses on Friday (Saturday, October 21, 2023, in Manila) to close out its worst week in a month, according to Stan Choe's report for the Associated Press (AP).

The stock market has been struggling under the weight of the bond market, where the yield on the 10-year Treasury briefly topped 5% late Thursday for the first time since 2007, according to Tradeweb. I Photo: Scott Beale Flickr

The S&P 500 fell 1.3% for a fourth straight drop. The Dow Jones Industrial Average sank 286 points, or 0.9%, and the Nasdaq composite tumbled 1.5%.

The stock market has been struggling under the weight of the bond market, where the yield on the 10-year Treasury briefly topped 5% late Thursday for the first time since 2007, according to Tradeweb.

High yields make borrowing more expensive for everyone, and they slow the economy while dragging on prices for stocks and other investments. In stock markets abroad, indices slumped across Europe and Asia.

The yield on the 10-year Treasury was hanging within a hair of 5% early Friday morning before later easing back to 4.91%. It’s been generally catching up to the Federal Reserve’s main interest rate, which is already above 5.25% and at its highest level since 2001.

Yields swung a day earlier after investors took comments from Federal Reserve Chair Jerome Powell to indicate the central bank won’t raise its main interest rate at its next meeting on November 1, as also reported by Zimo Zhong and Matt Ott for AP.

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