US stock markets today: Dow falls 400 points, S&P 500, Nasdaq slip as bond yields rebound - CNBC TV18

US stocks closed lower, with the Dow Jones Industrial Average dropping 400 points while the S&P 500 and Nasdaq also slipped. The pullback was attributed to a rebound in bond yields, a shift that often upends equity markets. After a period of cooling, the renewed climb in yields reintroduced a familiar source of pressure, prompting investors to reassess the appeal of riskier assets.

The connection between yields and stocks is central to understanding the move. Higher bond yields raise the discount rate applied to future corporate earnings, making those earnings less valuable today. Growth-oriented sectors, particularly technology, tend to be hit hardest because their valuations rely more heavily on profits far down the road. The Nasdaq’s steeper decline relative to the Dow reflects that dynamic, as the index carries a heavier weight in rate-sensitive growth names.

Looking ahead, market participants will watch whether yields continue to climb or stabilize. Key data releases and remarks from Federal Reserve officials may offer clues about the path of borrowing costs. For now, the episode reinforces how sensitive equity valuations remain to movements in the bond market.