The Dow Jones Industrial Average closed lower for a third consecutive trading day, as Treasury yields at decades-long highs continued to pressure the market's most cyclical sectors, according to Sina Finance. The Dow fell 161.61 points, or 0.31%, to 51,349.98; the S&P 500 slipped 1.90 points, or 0.02%, to 7,704.13; and the Nasdaq rose 3.34 points, or 0.01%, to 26,939.37. U.S. and Iranian negotiators were reported to be discussing an agreement to end the Middle East conflict in phases, a development that lifted stocks off their intraday lows. Oil prices and Treasury yields nonetheless remained elevated. International benchmark Brent crude rose more than 3% to settle above $106 a barrel, while U.S. WTI crude posted a similar gain, closing at about $95 a barrel. The 30-year Treasury yield touched 5.446%, its highest since June 2004, while the 10-year benchmark yield, tied to mortgage rates, jumped to 5.15%, near its highest since July 2007. The 2-year yield was little changed on the day but had reached its highest level since 2023 earlier in the week. The sharp rise in yields fueled expectations of further central bank rate increases. According to the CME FedWatch tool, fed funds futures showed the probability of another Federal Reserve rate hike in October at nearly 71%, up from about 55% a week earlier. Higher bond yields squeeze consumer finances, as households face both higher borrowing costs and rising fuel expenses. However, S&P Global's manufacturing and services purchasing managers' indexes showed U.S. business activity maintained strong expansion. Jason Stephens, founder of Evertern Wealth, said the U.S. economy has shown strong resilience, but that economic strength keeps inflation concerns present and pushes rates higher, adding that the bond market is currently the one most worth watching. Stephens said the greater risk is not whether the Fed will raise rates again, but how long high rates will persist, and what impact a 10-year yield sustained above 5% will ultimately have on real estate, corporate borrowing, private markets and equity valuations. He noted that energy is one of the biggest variables, as each shift in the Middle East situation brings rapid oil price swings that feed directly into discussions of inflation and rates. He said the market is in an intriguing contradiction, with investors worried about rising rates not because the economy is heading toward collapse, but precisely because the economic data is too strong. Oracle was a major decliner on Thursday. The company was reported to have invoked a force majeure clause on its data center project under construction in New Mexico to avoid the risk of project delays, and its shares fell more than 3% after the news.