Dow Falls 341 Points as Stocks End October Win Streak One Day After Record Closes

U.S. stocks pulled back on Wednesday, ending the market’s October winning streak one day after the S&P 500 and the Nasdaq Composite closed at record highs, according to The Wall Street Journal.

The Dow Jones Industrial Average fell 341.41 points, or 0.66%, to 51,179.87. The S&P 500 lost 17.16 points, or 0.22%, to close at 7,801.77, and the Nasdaq Composite slipped 61.20 points, or 0.22%, to 27,538.69, the Journal reported. The Russell 2000 index of smaller companies fell 1.3% to 2,793.20.

Yields spike, then an auction steadies the market

The selloff began after Treasury yields pushed higher early in the session. The 10-year Treasury yield reached 5.361% intraday, its highest level in 24 years, before easing to about 5.276% after solid demand at the Treasury Department’s 10-year note auction, according to the Journal. The 30-year bond yield rose to 5.660%, near its highest level since 2002, the report said. Barron’s likewise reported that stocks pared their early losses after oil prices offered some midday relief and the bond auction drew strong demand.

The higher yields are tightening conditions for borrowers. The average rate on a fixed 30-year mortgage stood at 7.52%, around a three-year high, according to Bankrate data cited by the Journal, and a homebuilders exchange-traded fund fell 2.6% on the day.

Fed minutes hang over the close

The pullback came the same day the Federal Reserve released minutes from its September meeting, which showed most officials expecting one more rate increase this year, with no rush to act at this month’s meeting. With the S&P 500 still within a fraction of a percent of its record, investors are now looking to the start of earnings season for direction.

Reporting based on coverage by The Wall Street Journal and Barron’s.