U.S. stocks closed lower on Thursday, with the selloff in equities gathered steam in late-day trade, as government bond yields touched their highest level in about 16 years. The Dow Jones Industrial Average DJIA, -0.84% shed about 291 points, or 0.8%, ending near 34,473, while the S&P 500 index SPX, -0.77% closed 0.8% lower and the Nasdaq Composite Index COMP, -1.17% fell 1.2%, according to preliminary FactSet Data. Equities were lower across the board, with only the S&P 500’s energy sector scoring gains on Thursday of 1.1%. Bond yields were once again a big driver in the market, with the 10-year Treasury rate TMUBMUSD10Y, 4.250% climbing to 4.307%, the highest yield for the benchmark rate since Nov. 2007, according to Dow Jones Market Data. Higher long-term Treasury rates make borrowing costs more expensive for households, the government and corporations, which can pinch earnings, economic growth and the stock market. Federal Reserve minutes of the July policy meeting showed central banks remain concerned about containing inflation, which could lead to additional rate increases.
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