The S&P 500, Dow and Nasdaq fell in Wednesday morning trading after strong U.S. economic data pushed Treasury yields to a nearly three-decade high. The pullback came a day after the Nasdaq composite closed at a record, and the Russell 2000 small-cap index dropped more than 1%.
The S&P 500 eased 0.4% in Wednesday morning trading, while the Dow Jones Industrial Average slid 0.3%. The tech-heavy Nasdaq composite lost 0.8% in early action, after falling as much as 1.2% at one point in the session.
Small caps lag, Nasdaq's record run pauses
The drop followed a strong session for the Nasdaq, which hit both a record intraday and closing high Tuesday, finishing at 27,244.28. Meanwhile, the Russell 2000 sank more than 1.3% in Wednesday trading. Midcaps fared better, however, as the State Street S&P Mid Cap 400 ETF gained 0.1%, though the fund remains below its key moving average.
Treasury yields jump on hot PMI data
Long-dated Treasury bonds sold off after a robust reading on manufacturing and services from S&P Global. The 10-year Treasury yield rose 10 basis points to 5.07%, a level not seen since July 2007, when the yield peaked at 5.2%. The composite PMI index rose to 57 in September from 53.9 in August, well above the 53.6 reading economists had expected.
McDonald's leads Dow decliners
Inside the Dow, McDonald's paced the losses, dropping more than 5% to its lowest level since October 2022. Salesforce, IBM and Boeing bucked the trend, each gaining 2% or more in the same session.
Source: Investor's Business Daily
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