After a day marked by sharp reversals, major stock indexes on Wall Street ended Thursday largely unchanged from where they started. The S&P 500 finished nearly flat, declining less than 0.1 percent, while the Dow Jones Industrial Average dropped 161 points, or 0.3 percent. The Nasdaq composite eked out a gain of less than 0.1 percent.

The market’s volatility reflected ongoing pressure from the bond market, as rising yields challenged the recent equity rally. The yield on the 10-year U.S. Treasury note climbed to 5.20 percent from 5.11 percent late Wednesday, returning to levels not seen since 2007. Elevated yields increase borrowing costs and can weigh on stock valuations and other investments.

Yields fluctuated throughout the day alongside oil prices, which have been volatile amid uncertainty surrounding the conflict with Iran and its impact on crude oil supplies from the Middle East. Midday, the 10-year yield briefly dipped from nearly 5.17 percent to below 5.13 percent before rising again. Similarly, the price of Brent crude oil dropped from about $102 per barrel to around $99 in a short span, later settling at $100.22—up 2.1 percent from the previous day.

Broader economic data underpinned some of the upward pressure on yields. A report showed that initial claims for U.S. unemployment benefits declined last week, reinforcing expectations of continued economic expansion. This has heightened speculation that the Federal Reserve may raise short-term interest rates further. The Fed increased its benchmark rate last week for the first time in three years, aiming to moderate economic growth and curb inflation. Futures data indicate more than a 50 percent probability of two additional rate hikes before year-end.

Despite concerns over inflation, geopolitical tensions, and trade issues, many U.S. companies continue to post solid profit growth, which has helped stabilize stock prices. Analysts at Barclays highlighted that strong corporate earnings, ongoing investment in artificial intelligence (AI), and robust consumer spending are likely to support both the economy and markets, even amid tighter monetary policy.

However, not all earnings reports were positive. Stitch Fix reported better-than-expected quarterly results but warned that a tougher consumer environment could constrain revenue growth, leading to a 21.6 percent drop in its stock. Darden Restaurants, owner of Olive Garden and LongHorn Steakhouse, met profit expectations but still saw its shares fall nearly 3 percent.

Higher Treasury yields have weighed particularly on high-growth and technology stocks, including those tied to AI, by increasing the cost of borrowing necessary for expansion. Nvidia, a leading AI chipmaker, declined 0.4 percent and was the largest drag on the S&P 500 Thursday as investors reassess the impact of rising interest rates on future growth prospects.