This Week on Wall Street

Wall Street extended its retreat Wednesday as the 10-year Treasury yield rocketed to 5.11%, its highest level since 2007, after stronger-than-expected S&P Global flash PMIs stoked fears of additional Fed tightening. The Dow Jones fell 0.68% to 51,511.59 and the Nasdaq Composite dropped 1.13% to 26,936.04 as chipmakers gave back some of the week's blistering rally, while the S&P 500 slipped 0.75% to 7,706.03, trimming its week-to-date gain to roughly 0.9% alongside a 2.0% Nasdaq advance and a 0.5% weekly decline for the Dow. Communication Services and Technology remain this week's clear leaders on continued AI enthusiasm and Meta's annual product event, while Real Estate and Utilities lag as surging yields pressure rate-sensitive sectors. The VIX jumped to 15.18 and the CNN Fear & Greed Index held at 35 (Fear) as traders now price in a greater-than-75% chance of another rate hike in October. Attention turns to Costco and Nike earnings after today's close, with Friday's durable goods orders, final Q2 GDP, and PCE inflation data closing out the week.