Stocks tumbled as surging energy prices and persistent inflation data pushed global bond yields to multi-year highs, overshadowing a stable labor market report.
WTI crude surged over 6% on US-Iran war escalation and Saudi production cut.
Nasdaq 100 dropped 1.08% as tech and chip stocks sold off.
10-year T-note yield surged to a 2.75-year high of 4.963% as inflation fears returned.
S&P 500 dropped 0.58% to a 5-week low as surging crude oil pushed bond yields higher.
Dow Jones Industrials fell 0.60% to a 5-week low on rate hike fears.
US equity markets retreated Thursday, with the S&P 500 and Dow Jones Industrials hitting 5-week lows. A 6% surge in WTI crude oil, driven by geopolitical tensions in the Middle East, fueled inflation fears and pushed the 10-year T-note yield to a 2.75-year high of 4.96%.
Bond yields are surging due to a combination of rising energy prices, which boost inflation expectations, and central banks signaling that interest rates will remain elevated for an extended period.