US stocks dip as rising Treasury yields take steam out of market rally

US stocks dip as rising Treasury yields take steam out of market rally

US equities traded mixed on Wednesday as rising Treasury yields offset stimulus optimism.

Early strength across stock sectors faded after ADP's monthly employment report showed February job growth missing expectations. The US added 117,000 private payrolls last month, the report said. Economists surveyed by Bloomberg had anticipated a 200,000-payroll gain.

The reading signals that the labor market is returning to growth after a nearly stagnant winter, but the weaker-than-expected data highlights how difficult it will be for the economy to recoup millions of lost jobs.

Treasury yields swung higher soon after the report's release. The move revived concerns of overstretched stock valuations, and the tech-heavy Nasdaq composite underperformed peers.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:

The modest decline followed weakness in Tuesday's session. Valuation concerns led tech stocks to weigh on major indexes. The Nasdaq composite sank the most, tumbling by 1.7% into the close.

ADP's labor-market data overshadowed optimism about coronavirus vaccine availability in the US. President Joe Biden said on Tuesday afternoon that the US would have enough doses for every American by the end of May, pulling forward a key forecast by two months.

The rate of vaccination has neared 2 million doses per day on