Highlights
Surging bond yields and rising oil prices sent stocks down on Wednesday after hotter than expected US economic data and hawkish Federal Reserve comments. The Dow Jones industrial average eased 0.7 percent while the S&P 500 fell 0.8 percent and the Nasdaq was off 1.1 percent. The dollar rose with higher interest rates.
Rising bond yields spurred a retreat in the AI trade after its recent gains. Oil prices also corrected higher after days of declines on hopes for diplomatic progress in the Middle East and a resumption of some oil flows from the Mideast.
The broad market was hurt by fear of rising interest rates after news that manufacturing and services purchasing managers business indicators surged unexpectedly in September, in addition to more comments from Fed officials basically promising more rate increases.