US stocks close lower as oil spikes and the benchmark Treasury yield breaches 5% - The Straits Times

US equities finished lower as two macro forces moved in tandem: a spike in oil prices and the 10-year US Treasury yield rising above 5%. The combination matters because both feed directly into the cost of capital and the cost of energy, two inputs that shape earnings expectations across most sectors. When yields climb, the discount rate applied to future corporate cash flows rises, which tends to pressure equity valuations — particularly for longer-duration growth names whose earnings sit further out.

Oil's move adds a separate channel. Higher crude raises input and transportation costs for businesses and squeezes household budgets at the pump, which can weigh on consumer-facing demand. It also complicates the inflation picture, since energy is a visible component of headline price measures.

What to watch: whether the yield holds above 5% or retreats, whether oil's rise persists or fades, and how upcoming inflation and labour data shape rate expectations. For now, the session reflects investors repricing risk against a higher-rate, higher-energy-cost backdrop rather than any single company development.