Wall Street Grapples with Yield Spikes: Stocks Tread Water

On Thursday, Wall Street's main indexes experienced subdued trading amid rising U.S. Treasury yields, which impacted stock gains. Crypto stocks followed bitcoin's losses, while key sectors declined. U.S. jobless claims reached monthly lows, indicating a healthy labor market. Investors anticipate potential outcomes from the 'Santa Claus rally.'

Wall Street's key indexes remained in the doldrums on Thursday due to subdued trading volumes, impacted significantly by climbing U.S. bond yields. Analysts believe this trend has tempered gains in equity markets, as investors look toward a year-end boost, known as the 'Santa Claus rally.'

Amid this atmosphere, major players like Amazon and Meta Platforms saw declines, contributing to the overall sector-wide losses. The consumer discretionary sector felt the most strain, leading losses with a 0.5% drop as the markets reacted to post-holiday dynamics.

As the Treasury's yields reached significant highs, particularly with the benchmark 10-year Treasury note, traders are left questioning the potential future movements in the stock market, guided by Federal Reserve projections and seasonal trends.

(With inputs from agencies.)