NEW YORK (Reuters) - Wall Street stocks stumbled on Thursday as U.S. Treasury yields continued their ascent to multi-year highs on the latest round of strong economic data, building concerns for an acceleration of inflation.
The Dow suffered its first decline in six sessions, while both the S&P and Nasdaq had their worst day since June 25.
The yield on the benchmark 10-year Treasury note US10YT=RR climbed to a seven-year high of 3.232 percent, marking its largest daily jump since the 2016 U.S. presidential election. Data on jobless claims and factory orders were the latest in a round of strong economic reports this week, putting the focus squarely on Friday’s payrolls report for September.
(For graphic on U.S. Treasury yields at multi-year highs, click reut.rs/2OA5ClY)
“The follow-through on the Treasury rates today, actually the follow-through worldwide on Treasuries, has a big part to do with this,” said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.
“And just in general, so many of these sectors have been so hot it may be time to take a little break,” he added.
Financials .SPSY were one of the few bright spots on Wall Street, rising 0.71 percent. Banks .SPXBK, which typically benefit from rising rates, gained 0.81 percent.
Thursday’s data, which showed jobless claims fell to a near 49-year low, followed comments this week from several Federal Reserve officials, including Chairman Jerome Powell, that underscored the strength of the economy.
The Dow Jones Industrial Average .DJI fell 200.91 points, or 0.75 percent, to 26,627.48, the S&P 500 .SPX lost 23.9 points, or 0.82 percent,
