U.S. stocks and cryptocurrencies faced selling pressure on Wednesday as the 10-year Treasury yield surged to its highest level since 2007. The yield jumped 12 basis points to 5.09%, driven by S&P Global’s flash September PMI data, which indicated the fastest pace of private-sector growth in over five years. This data reinforced market expectations for another Federal Reserve rate hike.
Bitcoin (CRYPTO: BTC) fell 2.3% to $84,300, following a broader pullback in risk assets. The Nasdaq 100 dropped 0.9% to 30,459.36, with technology stocks under pressure. Within the Magnificent Seven, Alphabet Inc. (NASDAQ: GOOGL) sank 3.0% and Amazon.com, Inc. (NASDAQ: AMZN) fell 1.9% amid renewed scrutiny of AI-hyperscaler debt issuance. Nvidia Corp. (NASDAQ: NVDA) also slipped 1.7%.
Traders are now pricing in a nearly 60% chance of another 25-basis-point rate hike next month. Other major indices also declined, with the S&P 500 falling 0.6% to 7,715.75 and the Dow Jones Industrial Average shedding 312 points, or 0.6%, to 51,551.98. The Dow was dragged down by McDonald’s Corporation (NYSE: MCD), which tumbled 5.8% after its investor day unveiled an $8.5 billion franchisee support plan.
Gold prices also retreated, falling 1.9% to $4,283.31 per ounce, as the U.S. dollar index strengthened to late July highs. On the corporate earnings front, Cintas Corporation (NASDAQ: CTAS) posted earnings per share of $1.36, beating the $1.33 estimate, while Paychex, Inc. (NASDAQ: PAYX) reported fiscal first-quarter EPS of $1.21, roughly in line with estimates.
