The Dow closed 120 points down, but had pulled more than 200 points off the trough it hit early in the session.
The S&P 500 and Nasdaq, already steadier, slipped just shy of flat after a bounce from intraday lows, leaving the three major indices collectively in the red for the second day.
Treasury yields surged, with the 30‑year hitting 5.57% after peaking at 5.61%—the highest level since 2002—while the 10‑year hovered near 5.23‑5.24% after testing 5.26%.
New York Fed President John Williams’ speech pushed the odds of an October hike to 50% from 70%, a 20‑point swing that lifted sentiment.
Brent crude slid to $103 a barrel, easing supply fears as West Asia exports rebound to 98% of pre‑war levels, and the US announced a further 40‑million‑barrel draw from the Strategic Petroleum Reserve.
The next key data points are the PCE inflation numbers due later tonight—expected to rise 0.3% MoM and 3.7% YoY—and the OPEC+ production quota decision at Saturday’s meeting, both likely to shape the market’s path forward.