The benchmark index had been see-sawing earlier in the day, flirting with a ninth straight day of gains that would mark the longest winning streak since 2004. But demand at an afternoon Treasury auction proved weak. raising long-term returns and put pressure on actions.
The declines accelerated after Fed Chairman Jerome Powell said the central bank's progress against inflation "not insured" leaving open the possibility of further interest rate increases.
US indices fell. The S&P 500, Nasdaq and Dow Jones fell 0.5% or more.
Disney recovered and was on track for its biggest one-day gain since the end of 2020 after reporting earnings that exceed forecasts and $2 billion in cost cuts.
Oil rose. Benchmark U.S. crude, which closed Wednesday at its lowest price since July, recently traded around $76 a barrel.
The data showed that China falling back into deflationhighlighting Beijing's challenges in revitalizing domestic demand.
Treasury yields rose. The 10-year Treasury yield topped 4.6%. The 30-year yield also rose.
