What is the driving force behind the markets on Wednesday as US stocks face difficulties due to the hawkish stance of the Federal Reserve, while oil prices and Treasury yields continue to rise?

Wall Street experienced another day of declines on Wednesday, indicating a bearish trend. The main factors contributing to the negative sentiment were the increase in crude oil prices, with WTI reaching $93 per barrel and a gain of over 3% in the session, as well as the rise in Treasury yields, with the 10-year reaching 4.60%. Minneapolis Fed President Neel Kashkari’s hawkish remarks about further interest rate hikes and no rate cuts in 2024 also added to the bearish sentiment. Despite the overall decline, the energy sector was a standout performer for the day, with the Energy Select Sector SPDR Fund up over 2%. Large-cap stocks in the Dow Jones underperformed compared to the S&P 500 and Nasdaq 100, while small caps held up relatively well, with the Russell 2000 rising 0.6%.