Dow Tumbles as Yields Rise, USD Surges to Seven-Week High

US stocks opened lower on Wednesday due to rising government bond yields and higher crude oil prices. The US 10-year Treasury yield reclaimed the 5% psychological level, while the 2-year yield reached its highest level in 27 months.

The USD climbed to a fresh seven-week high on hawkish Fed expectations, with traders pricing in around a 50% chance of at least a 25-basis-point rate hike next month. Federal Reserve Governor Michael Barr is set to speak later in the day, and his remarks will be closely watched for clues on interest rates.

Oil prices steadied at a two-week low due to improved Gulf supplies and diplomatic progress in the Middle East. Saudi Arabia's decision to reopen its East-West pipeline has eased supply concerns, while hopes of US-Iran talks have put pressure on oil prices.