U.S. stocks were steady on Wednesday after a sharp decline yesterday, as rising U.S. Treasury yields led the market lower.
On Tuesday, the Dow Jones Industrial Average fell 0.42%, the S&P 500 lost 1.11%, and the Nasdaq Composite was the biggest loser, down 1.89%.
U.S. services sector data released on Tuesday showed positive numbers but rose faster than expected, pushing prices higher, fueling inflation concerns.
As inflation concerns remain high, investors are starting to doubt a rate cut is imminent.
That pushed the 10-year U.S. Treasury yield to 4.68%, making borrowing more expensive and weighing on market sentiment.
Nvidia plunged 6.2%. The chipmaker had recently surged after its CEO unveiled new AI developments at CES, but those gains were wiped out in the market downturn.
Other major tech companies, AI-related stocks and cryptocurrency-related firms also suffered significant losses.
The focus now shifts to upcoming economic data and Fed signals for clues as to where the market will head next.
