Treasury yields down, stocks fall on global risks
By Sinead Carew
NEW YORK (Reuters) - Wall Street indexes fell along with U.S. Treasury yields on Thursday on safe-haven demand spurred by geopolitical worries, and the U.S. dollar rebounded after a sell-off following remarks by President Donald Trump on Wednesday was seen as an overreaction.
Financial stocks were the biggest drag on the S&P 500, hurt by moves in Treasuries and as bank quarterly results showed weak loan growth. [.N]
U.S. Treasury benchmark yields hit near five-month lows as Trump's comments saying he favored low interest rates intensified a bond market rally, which was underpinned worries about potential U.S. military strikes against Syria and North Korea.
Early afternoon news that a massive U.S. bomb was dropped in eastern Afghanistan added to uncertainty.
Kate Warne, principal investment strategist at Edward Jones in St. Louis, said the dip in bond yields put pressure on stocks ahead of a holiday weekend in the United States.
"What we've seen is investors from the rest of the world putting more money in U.S. Treasuries" due to geopolitical concerns, Warne said.
The Dow Jones Industrial Average fell 138.61 points, or 0.67 percent, to 20,453.25, the S&P 500 lost 15.97 points, or 0.68 percent, to 2,328.96, and the Nasdaq Composite dropped 31.01 points, or 0.53 percent, to 5,805.15.
The S&P was down more than 1 percent for the week. The energy sector was the index's biggest percentage decliner, led by declines in Chevron Corp and Exxon Mobil Corp. Continued...