US stocks finished lower across the board, pressured by another sharp rise in Treasury yields. The 10-year yield increased 11.8 basis points to 4.9545%, its highest level since October 2023. The rise in borrowing costs weighed particularly heavily on small-cap and technology stocks.Oil added another inflation concern after moving above $100 per barrel for the first time since mid-May. Higher oil prices can lift headline inflation, squeeze corporate margins and make it more difficult for the Federal Reserve to lower interest rates.The final numbers are showing:Dow industrial average fell 317.03 points, or 0.61%, to 52,069.22S&P index fell 44.59 points, or 0.58%, to 7,591.78Nasdaq Composite fell 171.62 points, or 0.65%, to 26,081.72Russell 2000 fell 30.28 points, or 1.04%, to 2,890.95Nasdaq 100 fell 318.04 points, or 1.08%, to 29,103.51The US PPI data came in close to expectations on a month-over-month basis, but the year-over-year readings remain the bigger—and more alarming—story. Producer inflation is still running well above the Fed’s 2% target, showing that price pressures in the production pipeline have not gone away. Because businesses can eventually pass those higher costs along to consumers, the elevated annual readings kept inflation concerns firmly in place.For the markets, the report was close enough to expectations to avoid an immediate data shock, but not soft enough to provide relief. Bond traders focused on the persistently high yearly inflation rates, sending Treasury yields sharply higher and increasing the pressure on equities.The Treasury yield curve ended sharply higher:2-year yield: 4.5687%, up 14.2 basis points5-year yield: 4.7492%, up 13.6 basis points10-year yield: 4.9545%, up 11.8 basis points30-year yield: 5.3673%, up 8.1 basis pointsThe message from the markets today was straightforward: higher yields and higher oil prices are not a friendly combination for equities. Rising yields increase the discount rate applied to future earnings, while oil above $100 adds to inflation and growth concerns. Buyers will now need yields to settle down—and preferably move lower—to give stocks some breathing room. This article was written by Greg Michalowski at investinglive.com.