US stock market falls today: Wall Street is lower Thursday. The three major U.S. stock indexes all in the red. The Dow Jones fell 383.63 points, or 0.74%, to 51,127.96. The Nasdaq dropped 217.93 points, or 0.81%, to 26,718.11. The S&P 500 lost 39.51 points, or 0.51%, to 7,665.18.
The Russell 2000 slipped 0.89% to 2,813.48, while the CBOE Volatility Index, or VIX, jumped 5.99% to 16.09.
Some individual stocks are seeing much bigger moves. Oracle fell 4.95%, losing $7.16 to trade at $137.40. MGM Resorts dropped 11.12%, or $4.21, to $33.64 after news that Barry Diller's People Incorporated had withdrawn its offer to take the casino company private. Nokia was also lower, falling 3.86% to $10.22.
Treasury yields are climbing again
The 10-year Treasury yield was around 5.10% in the latest data, its highest level since 2007. The 30-year yield reached about 5.43%, the highest since 2004.
Investors now have more reason to consider government bonds when deciding where to put their money. Companies also face higher borrowing costs when interest rates and market yields rise.
The effect can be especially noticeable in growth stocks. Much of their value comes from profits investors expect several years from now. When yields rise, those future earnings are worth less when calculated in today's dollars.
Oil has moved back above $100
WTI crude was near $96 a barrel, while Brent crude was above $107. Both benchmarks were up more than 4% in the market data provided.
The concern goes beyond the energy market. Oil is tied to transportation and production costs, so a sustained rise can eventually affect businesses across the economy. Some of those costs can make their way into consumer prices.
The interest-rate outlook is becoming less clear
Strong U.S. business activity has raised questions about how quickly inflation will return to lower levels. If price pressures remain stubborn, investors may have to adjust expectations for interest rates.
Borrowing costs and valuations are closely linked.
Oracle's decline is a good example of the tension. The company has benefited from strong demand for cloud infrastructure and artificial intelligence. Yet even companies with strong growth stories can see their shares fall when investors start placing a different value on future earnings.
Apple and Nvidia
Apple and Nvidia together account for more than 15% of the S&P 500, according to analysis cited by Yahoo Finance.
That is a sizeable share for just two companies. When stocks of that size move higher, they can lift the broader index. When they weaken, they can pull in the other direction even if smaller companies are holding up better.
For Thursday's session, investors are dealing with several pressures at once. Treasury yields are high, crude oil has jumped and inflation remains a concern. At the same time, some of the market's biggest technology names are facing greater scrutiny over their valuations.
