**Stock Market Update: Mid-Session Dip Despite Recovery Efforts**
After an early decline, stocks have slightly rebounded but continue to trade predominantly lower by Wednesday afternoon. All major indices have experienced downturns, with the Dow hitting its lowest mark in nearly a month.
Currently, the indices are struggling to gain positive traction. The Dow Jones Industrial Average has dropped 369.21 points, or 1.0%, to 38,483.65. The S&P 500 has decreased by 30.97 points, or 0.6%, to 5,275.07, and the Nasdaq Composite has shed 62.93 points, or 0.4%, reaching 16,956.95.
The bearish sentiment on Wall Street is driven by a continued rise in treasury yields. The yield on the benchmark 10-year note has surged to its highest point in almost a month.
The 10-year yield exceeded 4.5% on Tuesday, following less-than-favorable demand at auctions of two-year and five-year notes.
Rising treasury yields have compounded concerns about future interest rate hikes as the market anticipates crucial inflation data later this week.
On Friday, the Commerce Department is set to release its April report on personal income and spending, which includes inflation metrics closely watched by the Federal Reserve.
This inflation data could significantly influence interest rate forecasts ahead of the Fed's next monetary policy meeting on June 11-12.
In a recent CNBC interview, Minneapolis Fed President Neel Kashkari stated he needs to see "many more months of positive inflation data" before considering interest rate cuts. Although he lacks a vote on the Federal Open Market Committee this year, Kashkari also did not dismiss the possibility of rate increases if inflation does not decelerate.
Tech sector traders may be capitalizing on recent gains, such as the surge in Nvidia (NVDA) shares that propelled the Nasdaq to a record closing high on Tuesday.
### Sector Performance
Airline stocks are notably weak, with the NYSE Arca Airline Index plunging 2.8% after hitting a six-month intraday low. America Airlines (AAL) led the decline, plummeting 14.9% following a revision of its second-quarter earnings guidance.
Energy stocks have also taken a hit due to falling crude oil prices, pulling down the NYSE ARCA Oil Index by 2.2% and the Philadelphia Oil Service Index by 2.0%.
The NYSE Arca Biotechnology Index reported a 1.6% loss, reflecting significant weakness in biotechnology stocks. Other sectors, including steel, housing, and banking, are also exhibiting considerable losses.
### Global Markets
Asian markets largely traded lower on Wednesday, with Japan's Nikkei 225 Index falling by 0.8% and Hong Kong's Hang Seng Index declining by 1.8%.
European markets followed a similar pattern, with the French CAC 40 Index dropping 1.5%, the German DAX Index falling 1.1%, and the U.K.'s FTSE 100 Index slipping 0.9%.
In the bond market, treasuries continue their decline from the previous session. Consequently, the yield on the benchmark 10-year note is up by 8.2 basis points, now at 4.624%.
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