A jump in Treasury yields added pressure on the stock market, as trading of U.S. government bonds resumed following Monday's Veterans Day holiday. The yield on the 10-year Treasury jumped to 4.43% from 4.31% late Friday, which is a notable move for the bond market.
Treasury yields have been climbing sharply since September, in large part because the U.S. economy has remained much more resilient than feared. The hope is that it can continue to stay solid as the Federal Reserve continues to cut interest rates in order to keep the job market humming, now that it's helped get inflation nearly down to its 2% target.
Some of the rise in yields has also been because of Trump. He talks up tariffs and other policies that economists say could drive inflation and the U.S. government's debt higher, along with the economy's growth. That puts upward pressure on Treasury yields and could hinder the Fed’s plans to cut interest rates. Lower rates can boost the economy, but they can also give inflation more fuel.
The next update on inflation will arrive on Wednesday, when the U.S. government gives the latest reading on prices that U.S. consumers are paying across the country. Economists expect it to show inflation accelerated a bit to 2.6% in October from 2.4% the month before. But they're also looking for underlying inflation trends, which ignore prices for groceries and fuel that can zigzag sharply from month to month, to stay steady at 3.3%.
Helping to limit the losses on Wall Street was Live Nation Entertainment, which joined the lengthening list of U.S. companies delivering stronger profit for the summer than analysts expected. The company behind Ticketmaster said concert fans around the world are spending more to hear artists, and it said trends are already encouraging for 2025 stadium tours for Coldplay and others. Its stock rose 4.7%.
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