Stock market today: Indexes slip as bond yields disrupt holiday gains

• Stocks pulled back Friday morning as bond yields reached higher.
• Mixed initial jobless claims data sent the 10-year Treasury yield to a seven-month high on Thursday.
• Investors are still watching for a Santa Claus rally before the year’s end.

US stocks slumped Friday morning after a decent run across the holiday-shortened week.

Investors have pared back gains after Thursday’s mixed jobless claims data, which sent the 10-year Treasury yield above 4.6% and reached a seven-month high. The rate fell back modestly on Friday.

Last week’s initial jobless claims came in at 219,000, below consensus estimates of 225,000.

This month’s deepening bond sell-off also comes as a reaction to hawkish signals from the Federal Reserve. Though the central bank cut interest rates last week, it indicated diminished chances of broad easing in 2025.

Meanwhile, stock investors are still awaiting a “Santa Claus rally,” a five-day trading stretch marked by big gains at the year’s end.

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:

Here’s what else is happening: