NEW YORK, Jan. 17 (Xinhua) -- U.S. stocks ended lower on Wednesday, due to the run-up in U.S. Treasury yields and higher-for-longer theme on interest rates.
The Dow Jones Industrial Average fell by 94.45 points, or 0.25 percent, to 37,266.67, for the third consecutive day of losses. The S&P 500 lost 26.77 points, or 0.56 percent, to 4,739.21. The Nasdaq Composite Index shed 88.72 points, or 0.59 percent, to 14,855.62.
All the 11 primary S&P 500 sectors ended in red, with real estate and utilities leading the laggards by dropping 1.87 percent and 1.52 percent, respectively. Consumer staples posted the weakest decline, down 0.12 percent.
December retail sales unexpectedly jumped 0.6 percent, the Commerce Department reported Wednesday, exceeding analyst forecasts and suggesting a healthy consumer. Excluding autos, sales rose 0.4 percent, also above expectations.
"The Fed was already hammering away on its 'no rush to cut rates' message, and today's stronger-than-expected retail sales won't give them any reason to change their tune," said Chris Larkin, managing director of trading and investing for E-Trade from Morgan Stanley.
The CBOE Market Volatility Index, a market fear gauge, rose to an over two-month high of 15.40 points during the day.
Long-term Treasury yields finished at their highest levels since early December again on Wednesday, after robust U.S. retail sales. At one point, the 10-year rate increased by 3.9 basis points to 4.103 percent, while the 30-year yield rose less than 1 basis point to 4.311 percent.
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The Federal Reserve's Beige Book, also published Wednesday, suggested a potential slowdown in the U.S. labor market. Businesses reported larger applicant pools, decreased turnover rates, and more selective hiring practices. Additionally, the report noted signs of moderation in wage pressures. This information may influence the Fed's upcoming interest rate decision.