Wall Street Slips as Yields Rise and Crypto Stocks Tumble

Wall Street's main indexes fell on Thursday amid light trading volumes. Rising yields pressured shares, with a notable impact on rate-sensitive sectors like real estate. Despite hopes for a year-end Santa Claus rally, investors remain cautious due to stretched valuations and the Federal Reserve's outlook.

Wall Street's main indexes saw downward shifts on Thursday, influenced by increasing yields alongside sparse trading activity. Both the Dow Jones Industrial Average and S&P 500 dipped, while the Nasdaq Composite showed similar declines. Key figures included notable losses for major firms such as Amazon.com and Meta Platforms.

Government bond yields rose across the board, with the 10-year note reaching its highest level since May. This escalation in Treasury yields contributed to equity market weakness, particularly affecting rate-sensitive sectors like real estate and consumer discretionary stocks.

Expectations for a year-end 'Santa Claus rally' remain tempered as investors cautiously navigate an environment marked by the Federal Reserve's policy projections and ongoing valuation concerns. The recent jobless claims report, showing a dip in benefits filings, and declines in cryptocurrency-related stocks further underscored market volatility.

(With inputs from agencies.)