Highlights
Stocks faltered late on Wednesday as bond yields rebounded to end at the day’s highs and spur a late selloff. The Dow Jones industrial average lost 0.9 percent while the broader S&P 500 eased 0.3 percent and the Nasdaq was up 0.2 percent. Oil prices and the dollar index gained slightly.
Softer than expected PCE price inflation readings in the latest personal income and spending report sent bond yields down and spurred a more dovish repricing in Federal Reserve interest rate expectations in the morning. But later Wednesday in the final hour of trading for Q3, sellers returned to send the bond market lower and yields surging again.
Among stocks, most sectors had a bad day with airlines, banks, autos and homebuilders among the worst performers. The AI trade was mixed with software better, memory stocks lower, and semiconductors little changed. Energy, steel, biotech, and media fared relatively better.