Major US indices retreated as rising Treasury yields and semiconductor weakness weighed on sentiment, even as software stocks and crude oil prices saw gains.
The Philadelphia Semiconductor Index plunged 5.9% to a one-month low on sector-wide pressure.
The NYSE Arca Computer Hardware Index fell 4.8% in sympathy with semiconductor declines.
The Philadelphia Oil Service Index dropped 4% despite higher oil prices, possibly on profit-taking.
The Dow Jones U.S. Software Index gained 3.3% as investors rotated into software from hardware.
The Dow Jones Industrial Average fell 0.3% amid rising Treasury yields and cautious Fed outlook.
The S&P 500 dropped 0.5% as the 10-year yield breached 5%, pressuring equities.
The Nasdaq Composite declined 0.6% with semiconductor weakness leading losses.
Crude oil prices rose 1.3% on supply concerns after Houthi strikes and pipeline closure.
CME Group was mentioned as the provider of the FedWatch Tool, with no direct price impact.
AJ Bell's head of markets commented on Treasury yields, but the company's stock was not directly affected.
US equities closed lower as the 10-year Treasury yield climbed above 5%, pressuring risk assets ahead of the Federal Reserve's policy decision. Semiconductor and hardware sectors led the decline, while software stocks bucked the trend with a 3.3% gain. Investors remain cautious as geopolitical tensions in the Middle East keep crude oil prices elevated.
Market analysts view the 5% yield as a psychological threshold where low-risk government bonds become more attractive than risky equities, potentially triggering a market correction.