Traders work on the floor of the NYSE in New York
"Another leg up in oil prices has added to the market worries about sticky inflation, thereby stoking fears that interest rates will stay higher for longer," said Russ Mould, investment director at AJ Bell. As the 10-year Treasury yield held its 16-year high, megacap growth stocks including Apple, Microsoft, Amazon.com and Tesla shed between 0.3% and 0.8%.
Traders' bets on the benchmark rate remaining unchanged in November and December stood around 77% and 58%, respectively, according to CME's FedWatch tool. Meanwhile, a 25-basis-point rate cut is being priced in as early as March, growing to over 31% in June and July.All eyes will be on the final gross domestic product estimate and weekly jobless claims - due at 8:30 a.m. ET - to gauge the strength of the U.S. economy and the labor market.