US stock indices recorded a third consecutive day of losses on Wednesday. The Dow Jones Industrial Average fell by 405.41 points, or 0.77%, to 52,380.66. The S&P 500 declined by 0.48% to 7,636.36, while the Nasdaq Composite dropped 0.64% to 26,253.34.
Market sentiment was negatively impacted by rising Treasury yields and oil prices. The US Treasury Department announced it would triple its buyback of longer-dated debt to $6 billion. Despite this, the 10-year Treasury yield climbed to 4.84%, marking its highest level since November 2023.
Oil prices also saw significant gains due to geopolitical tensions between the US and Iran. Brent crude rose by 3.36% to $101.21 per barrel, and West Texas Intermediate increased by 3.25% to $96.05. Analysts noted that these levels reflect concerns over potential supply disruptions.
Market participants had anticipated a larger debt repurchase program, with expectations reaching between $7 billion and $8 billion. Experts highlighted a conflict in current market sentiment, noting that both equity optimism and expectations for higher interest rates remain at extreme levels.
