Major indexes on the New York Stock Exchange were shaken early in the session by bond market jitters, but recovered their losses later in the day to close slightly higher across the board. With this close, the Standard & Poor's (S&P) 500 index broke a three-day losing streak.

On the 1st (local time), the Dow Jones Industrial Average finished trading at 50,926.56 on the NYSE, up 20.51 points (0.04%) from the previous session. The S&P 500 ended the day at 7,666.45, up 14.91 points (0.19%), while the tech-heavy Nasdaq Composite closed at 26,871.60, up 10.53 points (0.04%).

■ NY Markets Shaken by Early Treasury Sell-Off

The New York market opened higher but came under downward pressure early in the session as selling of U.S. Treasuries intensified. Treasury yields, which move inversely to bond prices, spiked, and concerns that stocks could become relatively less attractive as an investment were reflected in the equity market.

In particular, the U.S. 10-year Treasury yield soared as high as 5.34% intraday, its highest level since 2002. This came as wariness grew over the possibility of prolonged high interest rates, driven by a combination of rising international oil prices, fears of reaccelerating inflation, and the resilient U.S. economy.

However, as the rise in Treasury yields quickly narrowed later in the session, the stock market also stabilized. The 10-year yield retreated from its intraday high to the 5.2% range, and major indexes rebounded from their lows to finish in positive territory.

■ Fed Vice Chair Jefferson Signals Caution on Further Rate Hikes...Easing Tightening Fears

Comments from Federal Reserve (Fed) officials also eased some market tension. Fed Vice Chair Philip Jefferson signaled a cautious stance on additional rate hikes, somewhat reducing fears of aggressive monetary tightening. In response, short-term Treasury yields also gave back much of their intraday gains.

By sector, energy stocks showed relative strength, buoyed by rising international oil prices, and some technology stocks also rose on earnings outlooks. However, the high level of Treasury yields itself weighed on growth stock valuations, limiting the indexes' gains.

■ Bond Yields Remain the Key Variable...Focus Shifts to Jobs Data on the 2nd

The market expects bond yield movements to remain the key variable for the New York stock market for the time being. With the U.S. 10-year Treasury yield at its highest level in 24 years, if the upward trend in yields strengthens again, market volatility could expand.

Investors' attention is shifting to U.S. labor market data due on the 2nd and upcoming remarks from Fed officials. If employment and inflation indicators come in stronger than expected, expectations for further rate hikes could resurface, so the tug-of-war between Treasury yields and the stock market is expected to continue.

[This article was written based on publicly available market materials and major index data, and does not constitute investment advice regarding specific stocks or financial products. Market conditions and outlooks may change depending on economic indicators, monetary policy, and bond yields, and investment decisions and their consequences are the responsibility of the investor. Some assistance from AI was used.]