The 10-year Treasury note yield briefly hit a 24-year high of 5.361% before stabilizing after a well-subscribed auction. This volatility underscored a broader bond market retreat, which Bank of America strategists attributed to shifting central-bank policies. Meanwhile, the average 30-year fixed mortgage rate remains near three-year highs at 7.52%, weighing heavily on the homebuilding sector; the SPDR S&P Homebuilders ETF fell 2.6% during the session.

Corporate sentiment faced additional pressure from regulatory and geopolitical headwinds. Shares of major equipment manufacturers including Deere, Agco, and Caterpillar tumbled after the Federal Trade Commission and the Agriculture Department initiated an antitrust investigation into the industry. Simultaneously, energy markets reacted to ongoing Middle East instability, even as oil futures retreated. Shell reported record-high refining margins, bolstered by supply constraints linked to regional shipping disruptions.