Wall Street Weakens, Surge in Bond Yields Overshadows Market Rally
US stock markets closed lower on Tuesday (May 20), with the S&P 500 index recording a third consecutive decline. Pressure arose as a surge in US government bond yields was seen as potentially disrupting the ongoing bullish trend in the equity market. Market participants were also monitoring oil price dynamics after President Donald Trump canceled plans to attack Iran, which had sparked geopolitical uncertainty.
The S&P 500 index fell 0.67% to 7,353.61, while the Nasdaq Composite weakened 0.84% to 25,870.71. The Dow Jones Industrial Average also fell 322.24 points, or 0.65%, to 49,363.88. This decline signaled growing investor caution amid pressure from the bond market.
Volatility in the bond market was a major concern. The yield on the 30-year US government bond briefly reached 5.19%, its highest level in nearly 19 years. Meanwhile, the yield on the 10-year bond—the main benchmark for mortgage, auto, and credit card rates—rose to 4.687%, its highest since January 2025. The rising yield raised concerns that higher borrowing costs could depress consumption and corporate performance, thus weighing on stock market sentiment.
Source: Newsmaker.id
