By Geoffrey Smith 8 p
Investing.com — U.S. stock markets opened mostly lower on Thursday under pressure from a fresh rise in bond yields, as market participants reacted skeptically to the Federal Reserve’s assurances that inflation won’t be a problem for the next two years.
By 9:40 AM ET (1340 GMT), the yield on the 10-year Treasury bond had risen to 1.75%, its highest in 14 months. while the 30-year bond was trading around the 2.50% level after breaching it in overnight trading for the first time since 2019.
Rises in long-term interest rates over the last few weeks have tended to put more pressure on technology stocks than others, as they raise the opportunity cost of holding assets that are in many cases only expected to generate significant cash flows some years in the future. That was the case again on Thursday, with the tech-heavy falling 1.3% in early trading, while the fell 0.5%.
The , by contrast, with its heavier weighting of cyclical stocks, eked out a 0.1% gain on top of Wednesday’s record close to trade at 33,098 points.
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