As traders concentrated on a recent rise in the 10-year Treasury yield, stocks fell on Friday.
Losing 9 points was the Dow Jones Industrial Average. The Nasdaq Composite lost 0.2% while the S&P 500 fell 0.1%.
On Thursday, the yield on the standard 10-year Treasury bond crossed the 5% threshold for the first time in 16 years. The 10-year yield reached 5.001% around 5 p.m. ET, the highest it has traded since July 20, 2007, when it reached a maximum yield of 5.029%. The price last traded at was 4.929%.
Following the company’s reduction of its revenue guidance for the third quarter, shares of SolarEdge fell 33%. After outperforming expectations in the third quarter on both lines, Knight-Swift Transportation increased by 13%.
The major averages are expected to decline this week. The Nasdaq is down 2.1% this week while the S&P 500 is down 1.3%. The Dow has dropped by 0.8%.
Jerome Powell, the head of the Federal Reserve, stated on Thursday that inflation is still too high and that it will probably take slower economic growth to bring it down. Powell added that he does not believe current interest rates are excessive.