Stock futures are little changed after S&P 500 hits fresh record: Live updates - CNBC
U.S. stock markets experienced a slight decline as Treasury yields reached their highest levels since 2002. The Federal Reserve signaled that further interest rate hikes may be necessary before the end of the year to manage economic risks.
Why it matters
Rising bond yields and potential interest rate hikes significantly impact borrowing costs for businesses and consumers, influencing overall market stability.
U.S. equities fell on Wednesday as pressure continued to build in the bond market, pushing Treasury yields to levels not seen in more than two decades .
The Dow Jones Industrial Average lost 341.41 points, or 0.66%, to close at 51,179.87, while the S&P 500 shed 0.22% to end at 7,801.77. The Nasdaq Composite slipped 0.22% to settle at 27,538.69.
Investors were spooked by the benchmark 10-year Treasury note yield reaching its highest level since April 2002 at 5.365% on Wednesday. The 30-year bond yield also hit its highest level since May 2002 at 5.732%.
The 10-year yield later backed off its high of the day after an auction in which the Treasury sold $39 billion in 10-year notes. The move in the yield, which was last little changed, helped stocks pare their declines.
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