S&P 500 falls 0.7% as Treasury yields hit multi-decade highs

U.S. stocks closed lower Wednesday as strong economic data, rising oil prices and a weak five-year Treasury auction pushed Treasury yields to multi-decade highs. The S&P 500 declined 0.7%, the Dow Jones Industrial Average lost 351 points and the Nasdaq 100 fell 0.8% from its record high. S&P Global PMI data showed strong new orders and multi-year highs in input and output price inflation, increasing expectations of another Federal Reserve rate hike this year. The bond selloff intensified after the Treasury auction attracted unexpectedly weak demand. Credit-sensitive AI hyperscalers, which are undergoing record levels of debt issuance, mostly declined, led by falls in Alphabet, Oracle and Amazon. Major banks also lost ground, while chipmakers retreated as investors took profits after this week’s rally.