U.S. Treasury yields soar, heavily impacting the stock market; the chip sector leads the decline

robot
Abstract generation in progress
ME News message: On May 16 (UTC+8), U.S. Treasury yields surged sharply on Friday, sapping investors’ interest in stocks as markets feared that the continued stalemate in the Middle East would further worsen inflation. The yield on the 10-year U.S. Treasury leapt to 4.595%, the highest level since February 2025, and marked the biggest single-day gain in more than a year. The yield on the 30-year U.S. Treasury rose to 5.127%, the highest closing level since July 2007. All three major U.S. stock indexes fell sharply. Chip stocks in the U.S. and overseas, which had rallied strongly over the past month, became one of the most hard-hit sectors. Against the backdrop of these market moves, oil prices continued to rise, reigniting concerns about inflation. Earlier, Trump said about the Strait of Hormuz that even if energy inventories are declining, the U.S. does not need the waterway to remain open. Overseas stock markets also performed poorly, especially the Korea KOSPI index, which had been leading gains before, falling by more than 6%. Japan’s Nikkei 225 also dropped sharply, with Japan’s 10-year government bond yield closing at its highest level since 1997 after producer prices jumped significantly in April. (Source: Jin10)
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 3
  • 3
  • Share
Comment
Add a comment
Add a comment
LendingPoolObserver
· 13h ago
South Korea and Japan stock markets both declined sharply; sentiment here in Asia-Pacific is very poor.
View OriginalReply0
GateUser-83c80dd0
· 14h ago
Japan's government bond yields are at their highest since 1997, and the global bond market is re-pricing itself.
View OriginalReply0
GateUser-b74aba1c
· 14h ago
The yield on U.S. debt is so strong, it has broken 5% for 30 years, and funds are flowing entirely into the bond market.
View OriginalReply0