U.S. Stocks Fall as Strong Economic Data Raises Yields

Most U.S. stocks fell on Wednesday as strong economic data drove up long-term Treasury yields, increasing pressure on financial markets. The Dow Jones Industrial Average dropped 443.87 points, or 0.9%, and the S&P 500 slipped 0.3%, while the Nasdaq composite rose 0.2%.

Markets initially gained following an August inflation report that showed a 3.4% increase in the cost of living, which was lower than the 3.7% economists had expected. However, subsequent reports indicating a stronger-than-expected spring economy and robust business activity in the Midwest pushed the 10-year Treasury yield to 5.29% and the 30-year yield to 5.64%.

Individual company performance varied. Hewlett Packard Enterprise rose 3.9% on AI-driven networking revenue forecasts, and MongoDB gained 3.4% after announcing a $1 billion stock buyback. In contrast, Cal-Maine Foods fell 0.7% after reporting quarterly losses that exceeded expectations. Internationally, Japan's Nikkei 225 rose 1.9%, while France's CAC 40 fell 0.9%. Gary Schlossberg of the Wells Fargo Investment Institute noted that the consumer remains resilient and in a better position than previously thought.