A rise in Treasury yields and oil prices dampened market morale, causing stocks to decline on Wednesday, compounding the severe losses from the previous session.
280 points or 0.8% less were lost by the Dow Jones Industrial Average. Prior to the end of the session, it had risen as much as 100 points. While the Nasdaq Composite dropped 0.6%, the S&P 500 fell 0.7%.
To reach its highest levels since 2007, the benchmark 10-year Treasury yield increased by 6 basis points. The yield on 2-year Treasury notes also increased. In the meantime, U.S. oil futures increased by almost 3%, last trading above $93 per barrel.
These actions suggest heightened concerns about the continuation of inflation, which will force the Federal Reserve to maintain higher rates for longer than expected.
With a growth of more than 2%, the energy sector had the best performance. Marathon Oil and APA, both of which increased by more than 3%, were the leaders.
Recently, the stock market has been under pressure due to rising rates. The S&P 500 breached the crucial 4,300 level on Tuesday for the first time since June. The Dow also experienced its largest single-day loss since March, losing more than 300 points and closing below its 200-day moving average for the first time since May. These losses followed the Tuesday economic forecasts being missed for both new home sales and consumer confidence.
Source (CNBC)