Stock market today: Wall Street falls as the vise tightens from rising yields in the bond market

The S&P 500 fell 27.34 points, or 0.6%, to 4,349.61. It was the first drop for the index in five days, breaking its longest winning streak since August.

The Dow Jones Industrial Average dropped 173.73 points, or 0.5%, to 33,631.14, and the Nasdaq composite sank 85.46 points, or 0.6%, to 13,574.22.

The stock market has largely taken its cue from the bond market, and weak results announced in the afternoon for an auction of 30-year Treasury bonds sent yields higher on all kinds of Treasurys. Higher yields can knock down prices for stocks and slow the economy by making borrowing more expensive.

Yields were already on the rise in the morning after a report showed inflation at the consumer level was a touch higher last month than economists expected. That raises worries about the Federal Reserve keeping its main interest rate high for a long time as it tries to drive down inflation. A second economic report from the morning likewise offered both encouragement and caution for financial markets. It said slightly fewer U.S. workers applied for unemployment benefits last week than expected.

Following the reports, the 10-year Treasury yield rose to 4.70% from 4.56% late Wednesday. The two-year Treasury yield, which more closely tracks expectations for the Fed, climbed to 5.07% from 4.99%.

Yields are still flat to down slightly for the week so far after jumping last week to their highest levels in more than a decade.

Rising crude oil prices put extra pressure on inflation recently, and they were volatile again Thursday. After jumping early in the day, a barrel of benchmark U.S. crude slipped 58 cents to settle at $82.91. Brent crude, the international standard, rose 18 cents to $86.00 per barrel.

Higher oil prices add costs across the economy, and airlines are particularly hurt because fuel is one of their biggest expenses.

Delta Air Lines fell 2.3% lower despite reporting stronger profit for the summer than analysts expected.

Several financial giants will report earnings Friday, including Citigroup, JPMorgan Chase and Wells Fargo, along with UnitedHealth Group. That could offer a window into how U.S. households are handling still-high inflation. Bank stocks were mixed ahead of Friday’s reports, with JPMorgan Chase down 0.2% and Wells Fargo up 0.1%.

Ford Motor slumped 2% Thursday, a day after the United Auto Workers union significantly escalated its walkout against Detroit automakers.

Abroad, indexes were mixed in Europe after rising sharply in much of Asia.