US Indices Retrace from Records as Yields and Oil Rebound
Nasdaq and S&P 500 pull back from Tuesday's highs after Treasury yields and oil prices rose Wednesday.
Key points
- Nasdaq and S&P 500 fell from record highs as 10-year yields rose above 4.99%.
- November Brent crude oil futures traded near $100, pressuring consumer and utility sectors.
- Worthington Enterprises shares surged 16% on demand for data-center liquid cooling equipment.
US stocks retreated from record highs on Wednesday. The Nasdaq and S&P 500 turned lower as bond yields and oil prices rose.
The Nasdaq Composite hit 27,157.84, down 0.32%. The S&P 500 fell 0.34% to 7,737.88. Both indices formed minor tops after Tuesday's gains.
Index Levels and Support Zones
The Nasdaq reached 27,288.79 Tuesday before reversing. It remains above its 50-day average of 26,136.82. The first support level is 26,545.88.
The S&P 500 peaked at 7,782.19. Its 50-day average is 7,629.90. A support cluster forms near 7,644.98 if selling continues.
Dow Lags Broader Market
The Dow Jones Average stayed below its 50-day line. It traded to a low of 51,658.13. This level now acts as the first recovery test.
The Dow remains under the 52,326.70 resistance level. Other sectors like utilities are down about 1%. This indicates weaker breadth in the rally.
Yields and Oil Drive Reversal
The 10-year Treasury yield rose above 4.99%. The two-year yield hit 4.81%. November Brent crude traded near $100.
Higher yields hurt growth stocks and utilities. Rising oil costs pressure consumer discretionary names. These factors reversed Tuesday's positive momentum.
Worthington Enterprises jumped 16% on strong demand for cooling tanks. This shows AI infrastructure demand persists despite index weakness. FXEmpire notes these mixed signals in its report.
