The S&P 500 fell by 0.8 per cent, following up on its prior day’s tumble of 1.2 per cent. The Dow Jones lost 0.5 per cent and the Nasdaq composite dropped by 1.1 per cent.

Increased pressure came from the bond market, where yields have recently neared their highest levels since the Great Recession sent interest rates collapsing. Yields climbed more following the afternoon release of the Fed minutes, which raised the potential for a further rate hike.

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High rates work to grind down inflation by bluntly slowing the entire economy and hurting investment prices. The Fed’s minutes showed that officials still don’t think the job on inflation is done but that they also acknowledge the risk of going too far and torpedoing the economy. They said they’ll make upcoming decisions based on what data reports about inflation and the economy tell them.

Some analysts took the minutes as a suggestion that another rate hike is possible, while others said it shows the Fed is likely done hiking.

“Ultimately, there were no major surprises in the minutes, as the Fed is expected to remain data dependent when determining the path of monetary policy through the end of the year,” said Sam Millette, fixed income strategist for Commonwealth Financial Network.

Big technology stocks and other investments seen as particularly vulnerable to higher rates were some of the day’s heaviest weights on indexes. Tesla fell 3.2 per cent. Facebook’s parent, Meta Platforms, dropped 2.5 per cent, and Amazon fell 1.9 per cent.

Wall Street has generally been retrenching this month on several concerns, including worries that torrid gains made this year through July were overdone and that interest rates may stay high for longer.

Data released on Wednesday showed that US industrial production improved by more than economists expected last month. Homebuilders also broke ground on more homes.

Treasury yields have been generally climbing as reports paint a picture of a still solid economy. That pressures stocks because when safe bonds are paying more in interest, investors feel less pressure to pay high prices for stocks and other risky investments.

The yield on the 10-year Treasury rose to 4.26 per cent from 4.22 per cent late Tuesday. It’s once again close to where it was when the 2007-09 Great Recession sent interest rates crashing. The 10-year yield helps set rates for mortgages and other important loans.

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In stock markets abroad, indexes were mixed in Europe. Stocks were down more sharply in Asia, where worries are high about a faltering economic recovery in China.

Stock indexes fell 1.4 per cent in Hong Kong, 1.8 per cent in Seoul, 1.5 per cent in Tokyo and 0.8 per cent in Shanghai.

With AP