Stocks were lower Wednesday as U.S. Treasury yields rose to multiyear highs. The Dow Jones Industrial Average dropped more than 300 points, while the S&P 500 Index and Nasdaq Composite lost roughly 1.3% and 1.6%, respectively.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
The 10-year Treasury yield climbed nearly 5 basis points to 4.897%, rising above 4.9% for the first time since 2007 during Wednesday's session. The 5-year Treasury and 2-year Treasury yields also rose to levels not seen in more than 15 years to as high as 4.937% and 5.214%, respectively.
The Federal Reserve returned to the spotlight on Wednesday, as the Philadelphia Federal Reserve President Patrick Harker told The Wall Street Journal in an interview that interest rates are currently at a level where more hikes may not be needed. "This is a time where we just sit for a little bit. It may be for an extended period; it may not. But let's see how things evolve over the next few months," Harker said.
The Fed's Beige Book reported Wednesday that the U.S. economy show "little or no change" over the past six weeks, with spending being "mixed" while prices rose "at a modest pace," according to the report.
On the earnings front, Morgan Stanley
Procter & Gamble
Shares of United Airlines
ASML
"The semiconductor industry is currently working through the bottom of the cycle and our customers expect the inflection point to be visible by the end of this year," ASML CEO Peter Wennink said in a statement. "We therefore expect 2024 to be a transition year."
In economic news, U.S. housing starts increased in September while building permits fell, the Commerce Department reported Wednesday. Starts rose 7% from August to a seasonally adjusted 1.358 million, and fell 7.2% from a year ago. Meanwhile, building permits declined 4.4% month-to-month to total 1.473 million, also 7.2% below September 2022's print.
For Thursday, market participants will react to earnings reports from companies including Netflix
This article has been fully updated.