Bond relief ebbs, stocks fall as investors question Treasury's rescue efforts

Minutes of the Federal Reserve's latest policy meeting released on Wednesday showed that concern about inflation deepened, with "several" policymakers appearing ready to raise interest rates and "many" saying a hike in borrowing costs would be needed if inflation does not decline to the central bank's 2% target.

Elevated oil prices also dampened sentiment. Brent crude futures LCOc1 rose 1.54% to $93.06 a barrel as disruption in the Strait of Hormuz showed few signs of easing. O/R

The decline in futures tracking the tech-heavy Nasdaq 100 index NQcv1 was more muted, helped in part by optimism towards AI.

"It's penny-wise, pound-foolish for tech companies to worry about where the yield curve is. The fundamental story for AI charges ahead regardless," said Marta Norton, chief investment strategist at retirement and wealth services provider Empower.