Stocks fell on Wednesday as rising Treasury yields and oil prices continued to rattle investors.
The Dow Jones Industrial Average dropped 405.41 points, or 0.77%, to end at 52,380.66. The S&P 500 shed 0.48% to close at 7,636.36, while the Nasdaq Composite fell 0.64% to 26,253.34. It was the third day of declines for all three indexes.
Treasury yields jumped on Wednesday after the Treasury Department said it's going to triple its buyback operation of longer-dated government debt to $6 billion. The move follows the Treasury Department's announcement last month that it's going to at least double the level of government debt buybacks.
Following the announcement, the 10-year Treasury note yield rose to 4.857%, reaching its highest level since November 2023. The yield had briefly climbed above the closely watched 4.8% level on Tuesday as rising oil prices added to concerns about inflation.
Even with the increased buyback plan, yields advanced because some on Wall Street anticipated even bigger repurchases by Treasury Secretary Scott Bessent. Peter Boockvar of The Boock Report said some thought the buyback would be as high as $7 billion or $8 billion.