US stocks dip as bond yields stay near highs

US stocks dipped early Thursday as investors watched a US-China summit and Treasury bond yields remained near multi-year highs.

About 10 minutes into trading, the Dow Jones Industrial Average was down 0.4 percent at 51,304.37. The S&P 500 fell 0.4 percent to 7,678.36, while the Nasdaq Composite Index dropped 0.5 percent to 26,792.45.

The yield on the 10-year US Treasury note edged down after reaching a 19-year high on Wednesday.

US President Donald Trump greeted Chinese leader Xi Jinping on Wednesday night, with a full day of White House events expected Thursday. The United States and China have agreed to a two-month extension of their trade truce but remain at odds over Beijing’s diplomatic and economic support for Iran.

Markets have moved this week between optimism about artificial intelligence technology and concern over the US-Iran war, oil prices and bond yields.

Adam Sarhan of 50 Park Investments said bond yields at their highest levels in decades were putting more pressure on the market, while oil prices remained above 90.