On the 19th (local time), U.S. Treasury yields surged, and all three major New York stock indexes closed lower.
On the New York Stock Exchange that day, the Dow Jones Industrial Average closed at 49,363.88, down 322.24 points, or 0.65%, from the previous session. The Standard & Poor's (S&P) 500 fell 49.44 points, or 0.67%, to 7,353.61, and the tech-heavy Nasdaq composite ended at 25,870.71, down 220.02 points, or 0.84%.
In particular, as profit-taking accelerated, the S&P 500 and the Nasdaq fell for a third straight session.
Recently surging bond yields weighed on the market. The 30-year U.S. Treasury yield rose at one point to 5.197%, a record high since 2007. At the close, it stood at 5.178%, up 5.5 basis points from the previous session (1 basis point = 0.01 percentage point).
The 10-year U.S. Treasury yield, the benchmark for global bonds, also climbed intraday to 4.687%, the highest since January 2025. It later edged lower but finished at 4.667%, up 8.7 basis points from the previous session.
High oil prices driven by the prolonged closure of the Strait of Hormuz also added to market pressure. International oil prices fell slightly for the first time in four sessions that day but remain near a high level of around $110 per barrel.
July delivery Brent futures settled at $111.29 per barrel, down 0.73% from the previous session, while June delivery West Texas Intermediate (WTI) futures closed at $107.77 per barrel, down 0.82%.
Investors are watching the Federal Reserve's rate outlook. They are expected to look for clues on the future path of monetary policy in the minutes of last month's Federal Open Market Committee (FOMC), to be released on the 20th.