US equity markets finished lower on Wednesday as robust economic data, a weak Treasury auction, and renewed energy-driven inflation worries pushed government bond yields to their highest levels in decades. The S&P 500 declined 0.7%, the Dow Jones Industrial Average lost 351 points, and the Nasdaq 100 slipped 0.8% from its record high. A fresh surge in oil prices helped drive yields higher, intensifying inflation concerns.
The move in yields accelerated after S&P Global PMI figures pointed to strong new orders and the fastest increases in input and output prices in several years, reinforcing expectations that the Federal Reserve could deliver another rate hike this year. The bond selloff deepened when a five-year Treasury auction drew unexpectedly soft demand.
Credit-sensitive AI hyperscalers—currently engaged in record levels of debt issuance—traded mostly lower, with Alphabet down 3.8%, Oracle off 3.1%, and Amazon falling 2.2%. Major banks also declined. Semiconductor stocks retreated as investors locked in gains from this week’s rally: Nvidia slipped 1.5%, Broadcom dropped 2.6%, and Micron lost 2.2%.
