A 10‑year Treasury yield surged to 4.97%, topping its 2004 high of 4.75% and nudging the market toward higher borrowing costs.
Initial jobless claims dipped to 197,000, the lowest since mid‑July, and the four‑week moving average fell to 202,250 from 204,000, underscoring a resilient labor market.
Bond market volatility spiked as the 30‑year yield jumped to 5.05%, its strongest level since 2004, echoing concerns that inflation could stay elevated for longer.
The market also weighed the upcoming Trump‑Xi summit, which may influence trade and AI policy, adding geopolitical nuance to the daily backdrop.
Analysts anticipate that the Fed may hold rates steady through the next meeting while monitoring inflation and labor data, keeping traders on edge for any sign of a rate‑cut pause.