Wall Street indices fell as rising bond yields and renewed inflation worries pressured growth stocks, while Brent crude oil rallied 3.9% on ongoing conflict concerns in the Middle East.
The 10-year Treasury yield jumped to 5.10% from 4.96%, a significant move that pressured stock prices and reflected inflation and debt worries.
The S&P 500 fell 0.8% as a jump in the 10-year Treasury yield to 5.10% and inflation worries pressured stocks.
The Nasdaq composite sank 1.1% from its all-time high as higher Treasury yields hit growth stocks particularly hard.
Brent crude oil jumped 3.9% to $103.08 on worries that the war with Iran will keep oil supplies bottled up in the Middle East.
The Dow Jones Industrial Average dropped 352 points (0.7%) amid rising bond yields and inflation concerns.
KB Home beat profit expectations but reported tougher housing conditions and higher mortgage rates, causing its stock to fall 3%.
General Mills reported stronger quarterly profit than expected and although it did not raise full-year guidance due to a challenging consumer backdrop, its stock rose 1%.
U.S. stocks retreated Wednesday as the 10-year Treasury yield surged to 5.10%, reflecting growing concerns over inflation and federal debt. Stronger-than-expected economic activity reports fueled fears of persistent price pressures, while Brent crude oil prices jumped 3.9% to $103.08 on geopolitical tensions in the Middle East.
Stocks declined primarily due to a sharp rise in the 10-year Treasury yield to 5.10%, which increases borrowing costs and pressures equity valuations, alongside concerns that strong economic growth will keep inflation elevated.
Higher oil prices, driven by geopolitical uncertainty in the Middle East, are contributing to inflationary pressures, forcing businesses to face higher costs that may eventually be passed on to consumers.