Wall Street ends lower, off record highs, as Treasury yields climb
SPY•All three major US stock indexes fell as long-dated Treasury yields climbed, with the Dow down 0.66%, the S&P 500 down 0.22% and the Nasdaq down 0.22%. The 30-year Treasury yield touched a 24-year high.
1. Stocks close lower
Wall Street ended lower Wednesday, a day after the S&P 500 and Nasdaq reached record closing highs. The S&P 500 and Dow snapped four-day winning streaks, while the Nasdaq recorded its first decline in six sessions; the Russell 2000 fell 1.3%. The indexes pared losses after crude prices turned lower following an agreement to speed up the release of oil stocks, prioritizing diesel.
2. Yields and Fed outlook
Long-dated Treasury yields touched a 24-year high as oil prices and debt concerns revived inflation worries. Minutes from the Federal Reserve’s September meeting showed divisions over the rationale for its unanimously approved first rate hike since July 2023. Markets priced in a 17.2% likelihood of another hike at the October meeting, down from 37.6% a week earlier.
