U.S. stocks fell following a bond selloff that sent yields to multi-year highs. New filings for unemployment fell unexpectedly to near 49-year lows.
The benchmark 10-year U.S. Treasury yield rose to near 3.2%, climbing to a seven-year high. The 30-year yield hovered above 3.3%.
Equities competing for capital fell accordingly, and major U.S. indices tumbled Thursday afternoon. The Dow (^DJI) fell as much as 331 points, while the S&P 500 (^GSPC) slipped 1.1%, or 32.33 points at 1:08 p.m. ET. The Nasdaq (^IXIC) was down 2%, or 160 points.
Could someone clarify what is meant by this news? Or point me to appropriate reading?