Highlights
Stocks eased on Wednesday on corrective pressures after two days of modest gains that saw the S&P 500 and Nasdaq reach new highs. The Dow Jones industrial average dipped 0.7 percent while the S&P 500 and the Nasdaq both eased by 0.2 percent. Bond yields retreated to end flat to mostly lower. The dollar rose and WTI oil prices declined.
Markets remained focused on global market interest rates which steadied on Wednesday after setting recent multiyear highs. Concerns focused on France and other major European borrowers where upward pressure on yields continues. US yields have steadied near their highs and saw downward pressure in the afternoon on lower oil prices and a surprisingly well-bid auction of 10-year notes. Sentiment on interest rates remains gloomy; on Wednesday, investors focused on heavy demand for capital from AI-related investment on top of huge sovereign borrowing.
Among sectors, defensive plays fared best on Wednesday while big technology shares were mixed. Staples, pharma and energy also outperformed. Lagging were engineering firms, homebuilders, banks, and industrial and precious metals.