Shares of banks and other financial institutions fell amid volatility in the Treasury market.
The yield on the 30-year Treasury bond rebounded Thursday, closing within 8 basis points of a multiyear high. The yield on the long bond recouped about half the losses it incurred on Wednesday following Treasury Sec. Scott Bessent's intervention.
"That round trip confirms that the Bessent put can smooth volatility and provide liquidity support, but it cannot offset a genuine geopolitical inflation shock," said strategist Luke Lango, in e-mailed commentary.
Some market participants are questioning whether the traditional safety premium afforded the U.S. Treasury market is now fading.
The prices of cryptocurrencies and shares of crypto- companies rose after President Donald Trump urged Congress to pass cryptocurrency legislation following meetings with executives. Shares of crypto exchange Coinbase and software maker Strategy shares were among the major gainers.
