US stocks fall as the 10-year US Treasury yield approaches 5% and Powell says inflation 'still too high'

• US stocks dropped on Thursday following comments from Federal Reserve Chairman Jerome Powell.
• Powell said that inflation is still too elevated and reiterated the higher-for-longer outlook for rates.
• "Does it feel like policy is too tight right now? I would have to say no," Powell said.

US stocks fell on Thursday after comments from Federal Reserve President Jerome Powell indicated that interest rates are likely to stay higher for longer.

"Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal," Powell said to the Economic Club of New York.

"Does it feel like policy is too tight right now? I would have to say no," Powell said, adding that the Fed remains committed to bringing inflation back down to its long-term 2% target.

The comments from Powell sent stocks lower and bond yields higher, with the 10-year US Treasury yield hitting a high of 4.99%, representing its highest level since June 2007.

Investors are also digesting a slew of earnings reports from companies, including Tesla, which missed analyst's profit and revenue estimates, and Netflix, which beat expectations.

Of the 64 S&P 500 companies that have reported third-quarter earnings results so far, 73% have beaten profit estimates by a median of 6%, according to data from Fundstrat.

Here's where US indexes stood at the 4:00 p.m. closing bell on Thursday:

• S&P 500: 4,277.98, down 0.85%

• Dow Jones Industrial Average: 33,413.45, down 0.75% (- 251.63 points)

• Nasdaq Composite: 13,186.18, down 0.96%

Here's what else happened today:

• America is in a "cardboard-box recession," and inflation could surge again, Charles Schwab's top global strategist said.
• Tesla is on track to wipe out $40 billion in market value as its shares fell 6% following Elon Musk's downbeat Cybertruck outlook.
• Netflix stock surged about 15% on Thursday after the company said it added nearly 9 million subscribers during its third quarter.
• Argentina's lust for the US dollar pushed its black-market rate up 60,000% since peso parity ended in 2002.
• The biggest bond ETF fell to its lowest level since July 2007 as the bond market meltdown continues, with the iShares 20+ Year Treasury Bond ETF down 2% on Thursday.
• Venezuelan bonds rallied 90% on Thursday, as the US did away with bans that prohibited American investors from trading the country's debt.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil jumped 2.38% to $89.35 a barrel. Brent crude, the international benchmark, surged 1.95% to $93.28 a barrel.
• Gold rose 1.10% to $1,990.00 per ounce.
• The 10-year Treasury yield jumped 8 basis points to 4.98% on Thursday.
• Bitcoin rose 1.43% to $28,732.