U.S. equities snapped a winning streak Wednesday as rising Treasury yields and crude prices stoked inflation concerns, sending the S&P 500 and Nasdaq lower from record territory. Mega-cap tech stumbled despite AI enthusiasm, while energy and utilities rallied on nuclear deal optimism. Market breadth deteriorated sharply with nearly 68% of names declining.
→ FOMC Minutes released today—market digesting hawkish tone from September meeting that conflicts with current pricing of only ~20% rate-hike odds for October
→ $39 billion 10-year Treasury auction results and bid-to-cover ratio as bond market stability remains key headwind to equity upside
→ Earnings season momentum: AI and chipmaker enthusiasm providing offset but sector rotation away from mega-cap tech toward utilities and power producers signals growing caution