US stocks fell on Wednesday as rising Treasury yields weighed on equities, although the major indices recovered from their session lows. The Dow Jones Industrial Average dropped 341.41 points, or 0.66%, to 51,179.87. The S&P 500 fell 0.22% to 7,801.77, while the Nasdaq Composite declined 0.22% to 27,538.69.
The US 10-year Treasury yield climbed as high as 5.365%, its highest level since April 2002, while the 30-year yield reached 5.732%, also a more than two-decade high. Yields later eased following solid demand at a US$39 billion auction of 10-year Treasury notes.
Minutes from the Federal Reserve’s September meeting showed most policymakers expected another interest rate increase would likely be appropriate before the end of the year, while stressing that future decisions would depend on incoming economic data.
Higher yields weighed on financial and technology stocks. Goldman Sachs and Bank of America fell around 1%, while CrowdStrike dropped almost 5%, Palo Alto Networks lost more than 3% and Meta Platforms declined more than 2%.
Oil prices eased, with West Texas Intermediate falling 1.3% to US$88.28 a barrel and Brent crude slipping 0.4% to US$100.20.
Australian Market Outlook
Australian shares are set to open lower, with S&P/ASX 200 futures down 53 points, or 0.6%, to 8,709. The weaker lead follows losses across all three major US indices, with elevated global bond yields remaining the key pressure on equity markets. Bond markets will remain in focus after yields also climbed across Europe, adding to concerns about borrowing costs and government debt. Investors will continue to assess the outlook for US interest rates following the Fed minutes and await further economic data for clues on the timing of its next move.
