US Stocks Plummet Amid Rising Yields and Geopolitical Tensions
The US stock market plummeted on Wednesday, with all three major indexes suffering losses. The Dow Jones Industrial Average dropped by 405.05 points, or 0.77 percent, to close at 52,381.02. The Standard and Poor's 500 fell 37.04 points, or 0.48 percent, to finish the session at 7,636.48.
The tech-heavy NASDAQ Composite declined by 168.07 points, or 0.64 percent, ending at 26,253.34 as investors rotated out of growth names amid rising borrowing costs. Higher Treasury yields tend to reduce the present value of future earnings, making technology and other high-valuation stocks particularly vulnerable.
The moves also reflected growing anxiety over the Federal Reserve's next policy steps, with traders pricing in the possibility of further rate hikes if inflation proves stubborn. Adding to the risk-off sentiment, oil prices surged sharply during the session as geopolitical tensions escalated in the Gulf region.