The Dow Jones Industrial Average closed near 51,000 as surging 10-year Treasury yields offset optimism from cooler-than-expected US inflation data.
The Dow rallied on soft inflation data but faded as Treasury yields climbed, closing near its low.
The Dow Jones Industrial Average retreated from intraday highs to close near its session low as 10-year Treasury yields climbed to 5.30%. Despite US inflation data printing below forecasts, rising bond yields pressured equity sentiment throughout the trading session.
While lower inflation initially boosted sentiment, the rally was neutralized by a sharp rise in 10-year Treasury yields, which reached levels not seen since 2007.