From CNBC · Sean Conlon,Hugh Leask,Justina Lee,Tobias Burns · · 3m
S&P 500 retreats from record as elevated yields keep traders on guard
Elevated U.S. Treasury yields push S&P 500 down as traders brace for rate hikes.
In brief
Elevated U.S. Treasury yields push S&P 500 down as traders brace for rate hikes. U.S. stock market declines as 10-year Treasury yields hit 5.365% since 2002, signaling potential rate hikes before year end. Originally reported by CNBC.
U.S. equities fall
U.S. equities fell on Wednesday as pressure continued to build in the bond market, pushing Treasury yields to levels not seen in more than two decades.
Dow and S&P 500 decline
The Dow Jones Industrial Average lost 341.41 points, or 0.66%, to close at 51,179.87, while the S&P 500 shed 0.22% to end at 7,801.77.
Treasury yields spike
Investors were spooked by the benchmark 10-year Treasury note yield reaching its highest level since April 2002 at 5.365% on Wednesday.
Bond auction results
The 10-year yield later backed off its high of the day after an auction in which the Treasury sold $39 billion in 10-year notes.
Fed minutes show rate hike expectations
Federal Reserve officials expect they will raise interest rates again before the end of the year to head off inflation that has run above target for more than five years.
Bank stocks drop
Bank stocks dropped as investors feared higher interest rates would hinder lending activity.
Tech stocks pressured
Technology stocks came under pressure amid worries that higher borrowing costs would limit the artificial intelligence buildout.
Treasury auction strength
The auction results for the 10-year were much stronger than feared and better than the last few notably bad auctions.
Fed minutes detail
Most participants assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end.
Inflation expectations
The median view for inflation over the next 12 months rose to 3.9%, up 0.3 percentage point from August and the highest level since May 2023.
Gold prices drop
Gold hit a low of 4,091.2 on Wednesday, reaching the lowest level since Aug 3, when it traded as low as 4,074.
Webull stock plummets
Shares of Webull tanked 20% on Wednesday after a bipartisan congressional panel found that the digital investing platform has deep ties to China's government.
Chevron CEO warns against diesel ban
Chevron CEO Mike Wirth warned it would be 'unwise' for the Trump administration to move forward with a diesel export ban.
U.K. house prices steady
Average house prices in the U.K. were flat in September, according to data from lender Lloyds.
Asian markets decline
Japan's Nikkei 225 closed 0.92% lower at 70,035.71, and the broader Topix fell 0.70% to 4,154.11.
Treasury yields rise again
Yields on bonds issued by various governments moved higher on Wednesday morning, amid lingering economic concerns.
The one thing
U.S. stock market declines as 10-year Treasury yields hit 5.365% since 2002, signaling potential rate hikes before year end.
