U.S. stocks retreated from record highs at midday Wednesday as hotter-than-expected economic data and a renewed surge in Treasury yields revived fears the Federal Reserve could soon raise interest rates.
The S&P 500 fell 0.6% to around 7,568, putting a nine-session winning streak in jeopardy. A late-day rebound back into positive territory would instead stretch the run to 10 days, its longest since 1995.
Treasuries Sold Off Sharply
The yield on the 10-year note climbed about 6 basis points to 4.50%, the 2-year rose to 4.10%, and the 30-year held at 5.00%.
The move followed ADP data showing the private sector added 122,000 jobs in May, above forecasts and the strongest reading since January 2025, alongside a stronger-than-expected ISM Services index at 54.5 and a 4.8% jump in factory orders.
The Nasdaq 100 dipped 0.5% to about 30,513 as the rise in yields hammered the largest growth names. Within Magnificent Seven stocks, Microsoft Corp. (NASDAQ:MSFT) fell 3.4%, Nvidia Corp. (NASDAQ:NVDA) dropped 3.0% and Amazon.com Inc. (NASDAQ:AMZN) lost 2.4%.
The small-cap Russell 2000 underperformed, falling 1.2%.
Meanwhile, the latest Iranian strikes and a sharp drop in U.S. crude inventories lifted oil for a third straight session.
West Texas Intermediate crude rose 2.5% to trade above $96 a barrel, while Brent climbed 2.0% toward $98, extending a third consecutive daily advance after government data showed U.S. crude inventories fell by roughly 8 million barrels last week, far more than expected.
Gold pulled back from recent strength, sliding 1.1% to about $4,440 an ounce as the stronger dollar and rising real yields sapped demand, dragging the SPDR Gold Shares (NYSE:GLD) lower. Silver fell 2.3%.
Bitcoin (CRYPTO: BTC) fell for the fourth straight session to $65,900, reaching lows last seen in late March.
Wednesday’s Performance In Major US Indices
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 7,567.66 | -0.6% |
| Dow Jones | 50,900 | -0.8% |
| Nasdaq 100 | 30,513 | -0.5% |
| Russell 2000 | 2,897.89 | -1.2% |
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