Wall Street Slips as Treasury Yields Rise Again

U.S. stocks closed lower on Wednesday, with the S&P 500 and Dow Jones Industrial Average ending five-day winning streaks. The S&P 500 and Nasdaq retreated from record highs as rising Treasury yields renewed inflation worries. Oil reversed early gains to finish lower, while rate-sensitive sectors including banks, housing, utilities, telecom and REITs declined.

EXPANDED:

U.S. stocks closed lower Wednesday. The S&P 500 and Dow ended five-session winning runs, while the S&P 500 and Nasdaq eased from record levels. Treasury yields climbed, with the 10-year note above 5.36% earlier and the 7.63% mortgage rate at its highest since October 2023. Banks, housing, utilities, telecom and REITs weakened. Oil erased early gains and settled lower. Market breadth was negative, with more 52-week lows than highs.

A strong 20-year bond auction briefly pushed yields down. Third-quarter earnings begin next week, including JPM, C, GS and WFC. LSEG expects S&P 500 earnings growth of 30.6%, led by energy at 114.7% and tech at 66.5%. Fed minutes showed officials split over the September 15-16 quarter-point increase, setting up debate for the October 27-28 meeting.

Count words: First para: U.S.(1) stocks2 closed3 lower4 Wednesday5. The6 S&P7 5008 and9 Dow10 ended11 five-session12 winning13 runs14, while15 the16 S&P17 50018 and19 Nasdaq20 eased21 from22 record23 levels24. Treasury25 yields26 climbed27, with28 the29 10-year30 note31 above32 5.36%33 earlier34 and35 the36 7.63%37 mortgage38 rate39 at40 its41 highest42 since43 October44 2023.45 Banks46, housing47, utilities48, telecom49 and50 REITs51 weakened52. Oil53 erased54 early55 gains56 and57 settled58 lower59. Market60 breadth61 was62 negative63, with64 more65 52-week66 lows67 than68 highs69. First 69.

Second: A1 strong2 20-year3 bond4 auction5 briefly6 pushed7 yields8 down9. Third-quarter10 earnings1