MARKET SNAPSHOT

U.S. stocks fell, led by the Nasdaq composite, as bond yields jumped to their highest levels in nearly two decades. The dollar strengthened, while gold fell. Oil futures settled higher.

MARKET WRAPS EQUITIES

U.S. stocks fell as the 10-year Treasury yield jumped back over 5% to the highest level since 2007.

The tech-heavy Nasdaq Composite paced the day's losses after hitting record highs in the previous two sessions, falling 1.1%. The Dow Jones Industrial Average dropped 0.7%. The S&P 500 fell 0.8%.

The bonds selloff comes despite efforts by the Treasury Department to cool down long-term yields by increasing its buying of long-term bonds. The department said Wednesday it will buy back as much as $6 billion in 20-year and 30-year bonds on Thursday.

Fed governor Michael Barr said he expects the central bank would likely need to raise interest rates further to tamp down inflation. Before last week's quarter-point rate hike, "we were out of position, and we made an adjustment in the right direction," Barr said in a speech in Chicago. "In my base case, further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion."

Odds of a rate hike next month rose near 70%, from under 50% a week ago, according to the CME FedWatch tool.

Stock markets across Asia were mixed Wednesday, with Hong Kong's Hang Seng Index declining 1% and the Shanghai Composite Index falling 0.4%. The Shenzhen Composite ended 0.5% lower, while the ChiNext Price Index fell 0.6%.

South Korea's Kospi was up 0.9% and Taiwan's Taiex rose 0.75% to a record close.

Japanese markets were closed for holidays.

Stocks in Australia rose, as the S&P/ASX 200 Benchmark Index added 0.1%. The S&P/NZX 50 Index declined 0.4%.

COMMODITIES

Oil futures settled higher following five sessions of losses, with WTI rising 1.8% to $92.16 a barrel and Brent up 3.9% to $103.08 a barrel.

U.S. weekly inventory data were seen bearish for oil as crude stocks rose by 3 million barrels, putting inventories 2% above the five-year average. Product stocks remain tighter, with gasoline inventories 6% below average for the time of year and distillate stocks 12% below average.

"Ironically, the only bearish distillate data in today's report was distillate exports down 283,000 barrels a day to a nearly three-month low of 1.331 million barrels a day," Mizuho's Robert Yawger said in a note.

The report came as the Trump administration is considering a diesel export ban to lower domestic prices.

Gold futures fell for a third straight session as the U.S. dollar strengthened and Treasury yields rose, including the 10-year yield at its highest level since July 2007.

Fed officials have reaffirmed support for last week's interest-rate increase while warning of inflation risks, sustaining odds above 50% of another rate increase in October, Critical Metals' CEO Tony Sage said in a note. "A firmer U.S. dollar and elevated U.S. yields could also continue to keep pressure on bullion."

Front-month gold fell 1.3% in New York to $4,281.30 a troy ounce. Silver settled down 2.4% at $64.382 a troy ounce.

TODAY'S TOP HEADLINES

Ten-Year Treasury Yield Reaches 19-Year High Amid Broad Bonds Selloff

Investors sold off U.S. government debt, sending Treasury yields to new highs amid mounting concerns about inflation, rising interest rates and the Middle East conflict.

The 10-year benchmark, which has a broad impact on borrowing costs across the economy, rose as high as 5.14% Wednesday, an intraday level last seen in July 2007. It settled at 5.11%. The yield rose as high as 5.302% in 2007.

The bonds selloff comes despite efforts by the Treasury Department to cool down long-term yields by increasing its buying of long-term bonds. The department said Wednesday it will buy back as much as $6 billion in 20-year and 30-year bonds on Thursday.

Fed's Barr Says More Rate Hikes Likely Needed to Return Inflation to Target

Federal Reserve Gov. Michael Barr said further rate increases are likely needed to ensure inflation comes down to target in a timely fashion.

Barr expressed that he supported the Fed's decision to raise interest rates by a quarter-percentage point last week, speaking at an event in Chicago. He noted that risks to achieving the Fed's inflation target have risen.

"Inflation is above our 2 percent target and not clearly trending toward target in a timely way," a published text of his remarks said. "In my base case, further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion."

Iran's President Says Open to Talks but Won't Bow to U.S.

Iranian President Masoud Pezeshkian said Wednesday that Iran is ready for negotiations to end the conflict with the U.S. but warned that Tehran will never surrender to what he called Washington's bullying, or give up its nuclear program.

Pezeshkian's remarks at the United Nations General Assembly come during a protracted stalemate between the U.S. and Iran, with Washington seeking to choke off Iran's economy through a naval blockade and sanctions while Tehran continues striking at commercial vessels in the Strait of Hormuz and regional infrastructure.

A day earlier, the U.S. and Iran said they had held indirect talks on the sidelines of the General Assembly to discuss steps to end hostilities.

Disney Boosts Prices on Several Streaming Subscriptions

Disney is increasing prices on several of its streaming subscriptions, a person familiar with the matter said, following similar moves from rivals in recent months.

Standalone plans for the entertainment company's Disney+ and Hulu streaming services will now cost an additional $2.50, at $21.49 a month, the person said.

The increase puts the price of Disney's premium streaming plans more on par with competitor Netflix, which sells its ad-free premium service for $26.99 a month.

Anthropic Leaders Back Startup Developing System to Detect Biological Threats

Two Anthropic leaders are investing in a small startup backed by Peter Thiel that is developing hardware to detect viruses in the air, as fears grow that artificial-intelligence systems might cause novel biological threats.

Logan Graham, head of Anthropic's frontier red team and Sholto Douglas, a member of its technical staff, invested in a $25 million seed round for Redwood City-Calif.-based Pilgrim that valued it at $150 million, the company said. They invested in a personal capacity along with Coinbase co-founder Fred Ehrsam, among other technology leaders, in a round led by venture capital firm Buckley Ventures. Earlier investors include Figma CEO Dylan Field.

The startup, Pilgrim, has built a 50-pound tripod-mounted hardware device called Argus that is packed with sensors that combines air sampling and genomic sequencing to detect biological threats, like Ebola or anthrax. It signed an agreement with the Centers for Disease Control and Prevention to develop an automated airborne biosurveillance system for the U.S. and has begun deploying Argus in some parts of the country.

China's Geely Unveils EV Charging Under Five Minutes

Geely Automobile unveiled a new electric-vehicle charging technology that it says will recharge a battery from low to nearly full in under five minutes, escalating a race among Chinese automakers to slash charging times as demand in the domestic market slows.

The Chinese automaker said Wednesday that its latest charging technology used artificial intelligence to deliver faster charging while reducing heat and improving battery life.

Geely co-developed an AI model called Xingrui PowerMind with Chinese AI startup StepFun, which it says can predict battery temperatures up to 30 seconds in advance and adjust charging power accordingly.

YouTube Is Battling Netflix Over Top Talent

Popular digital creators helped YouTube become the world's dominant source of video. Now it is fighting to keep their loyalty.

The streaming platform, which is owned by Alphabet's Google, faces growing competition from Netflix on turf it has controlled for two decades. The platform known for "Stranger Things" and "KPop Demon Hunters" is writing big checks to lure the producers of shows like "Good Mythical Morning" and "Alan's Universe" to make Netflix their second home.

At an event Wednesday, YouTube rolled out better tools for digital producers that could help it to keep more of their content exclusively.

Expected Major Events for Thursday 00:30/JPN: Sep Japan Flash Manufacturing PMI

01:30/AUS: Aug Labour Force

05:00/JPN: Aug Convenience Store Sales

05:00/JPN: Aug Steel Production

08:30/HK: Aug External Merchandise Trade

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