MARKET SNAPSHOT

Stocks pared losses after Treasury yields fell from fresh intraday highs as investors showed interest in an auction of 10-year notes. Oil prices reversed earlier gains as oil continued to flow out of the Middle East. Gold prices fell as the dollar strengthened.

MARKET WRAPS EQUITIES

U.S. stocks fell as volatility in Treasury yields sparked concerns about mortgage rates and corporate credit costs.

The Dow Jones Industrial Average fell 0.7%. The S&P 500 lost 0.2%, falling from a record high. The tech-heavy Nasdaq Composite also slipped 0.2%.

Stocks were down sharply in early trading after a recent spike in Treasury yields intensified. Stocks pared losses when the yields eased in the wake of a strong auction.

The worldwide "bond bear market" in 2026 is largely a response to changing central-bank policy, said strategists at brokerage Bank of America Global Research, in a note to clients.

Most Fed officials anticipated another rate increase this year during discussions at the September meeting, according to minutes released Wednesday. Some officials cast the plan as insurance against future inflation issues rather than a response to current conditions, however.

Equity markets across Asia-Pacific declined amid possible position adjustments.

South Korea's Kospi fell for a second consecutive session, sliding 2% as tech stocks retreated.

Japan's Nikkei Stock Average lost 0.9%, weighed down by financial stocks.

Hong Kong's Hang Seng Index declined 0.6%. Markets in mainland China remained closed for the Golden Week holiday.

Stocks in Australia slipped, as the S&P/ASX 200 edged 0.1% lower. New Zealand's S&P/NZX 50 Index also dropped 0.1%.

COMMODITIES

Oil futures gave up early gains and settled lower as traders looked past fresh Houthi attacks in Saudi Arabia and production shut-ins off the U.S. Gulf coast and focused on continuing oil flows out of the Middle East.

Brent crude for December delivery settled down 0.4% at $100.20 a barrel after rising to as high as $102.59. West Texas Intermediate crude for November delivery fell 1.3% to $88.28 a barrel.

Futures have declined in three of the past four sessions on optimism about the amount of oil that is making it out of the Persian Gulf despite the conflict remaining unresolved.

"I think people are looking at the markets with a positive lens and the expectation is that we're getting close to 90% of flows through the Strait of Hormuz," said Chris Cook, a research analyst at Frost Investment Advisors. "If it wasn't for the fuel costs for the transportation and the insurance that's getting tacked on, we'd probably be in a much lower price environment right now."

Gold futures posted their third decline in four sessions as the U.S. dollar gained and buoyant U.S. yields kept a lid on demand for the metal.

Earlier gains in oil prices had put pressure on precious metals, given the inflationary implications of higher energy costs.

Front-month gold settled down 1.1% in New York at $4,113.80 a troy ounce and silver fell 2.1% to $59.899 a troy ounce.

TODAY'S TOP HEADLINES

Fed Minutes Signal Further Rate Increase This Year, but No Urgency for October Hike

When Federal Reserve officials met to raise interest rates last month, most expected a further increase later this year, but minutes of the meeting, published Wednesday, didn't show that policymakers made an urgent case that such a follow-on move should come at the next meeting in October.

Officials were unanimous in backing the September rate increase to respond to persistent inflation. Many officials believed the rate increase was justified to address the risk that inflation will run above expectations, while some thought that the current outlook for price increases was itself enough reason to raise rates, according to the minutes.

Most officials filed projections at the September meeting showing one more rate increase across the Fed's two remaining policy meetings this year, in October and December. A small handful penciled in increases at both meetings.

U.S. Treasury Pays Highest Borrowing Costs Since 2000

The U.S. Treasury paid the highest yield in a 10-year notes auction this century, as investors demand increasingly higher returns to finance spendthrift governments.

The department auctioned $39 billion in 10-year notes Wednesday at a yield of 5.300%, the highest since an auction held in November 2000, which had a high yield of 5.865%.

Demand indicators were robust and the auction cleared at a lower cost than market yields at the time.

France Considers Issuing More Shorter-Term Debt After Bond-Market Turmoil

France is considering boosting issuance of shorter-term debt, as investors grow more hesitant to lend to the debt-laden country for longer periods.

In an interview, Finance Minister Roland Lescure said France would be "strategic" in issuing new debt at a time when demand from investors has been rattled by the country's deepening financial woes.

A monthslong selloff in French government bonds has accelerated in recent weeks, sending long-term borrowing costs toward their highest level since 2002. Investors are concerned that political paralysis is making it impossible for the country to rein in public spending. Lescure on Tuesday pledged to force spending cuts through Parliament, but that hasn't quelled fears that the country is heading for a debt spiral.

IMF Chief Tells Economic Leaders: The Time to Act Is Now

The global economy is caught in a tug of war between an energy shock and an artificial-intelligence boom.

Those forces are testing the resilience economies have shown through a series of crises, International Monetary Fund Managing Director Kristalina Georgieva said Wednesday.

Mounting global public debt-on track to exceed 100% of gross domestic product-adds a third source of pressure, she said Wednesday.

Disney+ to Stream 2027 Super Bowl

Disney said its streaming platform will livestream the Super Bowl in 2027.

All Disney+ subscribers in the U.S. will be able to stream the traditional game presentation airing on ESPN and ABC, as well as the Spanish-language telecast on ESPN Deportes.

The Super Bowl was broadcast on NBC, Telemundo and Peacock in 2026.

Wells Fargo Faces Regulator Probe Over Efforts to Boost Black Homeownership

Trump administration housing officials are launching an investigation into Wells Fargo over programs and commitments the bank made over nearly a decade to increase homeownership among Black Americans.

The Department of Housing and Urban Development on Wednesday sent Wells Fargo Chief Executive Charlie Scharf a letter saying it would examine whether the bank violated fair-lending laws by favoring Black or other minority homeowners, according to a copy viewed by The Wall Street Journal.

Wells Fargo didn't have an immediate comment Wednesday.

Expected Major Events for Thursday 00:00/AUS: Oct Consumer Inflationary Expectations Survey

04:30/JPN: Sep Corporate Insolvencies

05:00/JPN: Sep Economy Watchers Survey

05:30/AUS: Sep Official Reserve Assets

08:00/TAI: Sep Merchandise trade

23:30/JPN: Aug Household Spending

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