Dow Falls Amid Rising Yields and Hawkish Fed Expectations

US stocks fell on Wednesday as investors await developments from negotiations in the Middle East and ahead of a key US-China summit. Treasury yields rose, pushing the US 10-year yield above 5%, its highest level since March.

The Dow Jones Industrial Average traded within a descending channel, below its 50-day exponential moving average (EMA), with sellers needing to break below support around 51,500 and 51,200 to extend the bearish move. Buyers will need to rise above the upper band of the falling channel and the 50 EMA to target 53,800.

The USD climbed to a fresh seven-week high on hawkish Fed expectations, with EUR/USD remaining under pressure due to stronger Eurozone PMI data. Oil prices steadied at a two-week low amid improving Gulf supplies and optimism over diplomatic progress in the Middle East.