12:19 PM EDT, 05/29/2024 (MT Newswires) -- US benchmark stock indexes declined after midday on Wednesday as most government bond yields jumped amid concerns over the direction of interest rates this year.

The Nasdaq Composite fell 0.4% to 16,953.2, the S&P 500 was down 0.6% to 5,272.3, and the Dow Jones Industrial Average slid 1% to 38,463.4. All sectors were in the red intraday, with energy and utilities among the steepest decliners.

The US 10-year Treasury yield jumped 6.8 basis points to 4.61%, the highest level since early May. The two-year yield rose 2.2 basis points to 4.98%, close once again to the psychologically important 5% level. The US Dollar index rose 0.4% to 105.02.

Sovereign bonds and equities cheapened on Wednesday morning, and the dollar strengthened. Still, according to a note from Scotiabank, most of the moves were an extension of Tuesday's sell-off driven by consumer confidence data, soft Treasury auctions, and Fed-speak.

More auctions are on tap Wednesday that will further test appetite for US debt after Tuesday's 2-year bid-to-cover fell to 2.41 from 2.66 the last time and the 5-year bid-to-cover fell to 2.3 from 2.39, Derek Holt, head of capital markets economics at Scotiabank, said in the note.

Those are hardly disasters but reflected [Minneapolis Fed President Neel] Kashkari's comments that low probability hikes remain on the table for him and an "indefinite" pause is possible, Holt said in the note. Kashkari spoke hours ahead of the Tuesday government debt auctions.

In company news, American Airlines ( AAL ) shares sank 14% intraday, the worst performer on the S&P 500, after the company cut its Q2 earnings outlook late on Tuesday. Concurrently, the air carrier said its chief commercial officer will depart next month.

ConocoPhillips ( COP ) agreed to acquire Marathon Oil ( MRO ) in an all-stock deal worth roughly $22.5 billion, including $5.4 billion of debt. Marathon shares jumped 7.8% intraday, the top performer on the S&P 500.

West Texas Intermediate crude oil fell 0.5% to $79.42 a barrel.