US stocks ease off record highs as yields regain momentum
SPY•All three major US indexes ended modestly lower Wednesday as Treasury yields resumed climbing, with the 10-year yield briefly reaching 5.3645%, its highest level since 2002. The Dow fell about 0.7%, while industrials led sector declines and healthcare gained more than 1%.
1. Indexes retreat from records
US stocks stepped back from record territory Wednesday as rising Treasury yields revived concerns about inflation and the government’s growing debt burden. The S&P 500 and Dow snapped four-day winning streaks, while the Nasdaq posted its first decline in six sessions.
2. Yields and sectors
The 10-year Treasury yield briefly climbed to 5.3645%, its highest level since 2002, before easing to near 5.29%, slightly higher on the day. Industrials fell more than 2%, while real estate and materials each lost more than 1%; healthcare gained more than 1%. Oil prices settled lower after the International Energy Agency agreed to accelerate the release of stockpiles.
3. Fed minutes and leaders
Minutes from the Federal Reserve’s September meeting showed policymakers divided over the case for higher rates. Mid-cap stocks, regional banks, housing-related shares and gold and silver miners lagged, while the Nasdaq Biotech Index rose 0.3%. The NYSE FANG+ Index and S&P 100 Index reached fresh record highs.
