US stock indices ended Thursday mixed amid renewed volatility in both bond and oil markets. The S&P 500 and Nasdaq finished roughly flat, while the Dow Jones Industrial Average declined by 162 points. The yield on the 10-year US Treasury briefly surpassed 5.15% before easing back to around 5.1%, holding near its highest levels since 2007. The 30-year yield also climbed, reaching its strongest level since 2004.
Borrowing costs rose in tandem with higher oil prices, driven by escalating tensions between the US and Iran. Later in the session, however, reports indicated that US and Iranian negotiators were moving closer to an agreement that would restore tanker traffic through the Strait of Hormuz. Oil prices subsequently pared gains, which helped pull yields on shorter-dated Treasuries lower.
AI-focused hyperscalers delivered a mixed performance. Alphabet gained 1.3%, and Meta rallied 4.5%, supported by favorable reception to their new AI agent software and hardware launches. By contrast, Microsoft slipped 0.5%, and Amazon ended the session little changed. Oracle dropped 3.5% after declaring force majeure in connection with delays at a data center project in New Mexico. Chipmakers also traded mixed, weighed down in part by heavy debt issuance tied to financing AI infrastructure buildouts.
