NASDAQ, S&P 500, Dow Jones slip as bold yields climb; banking stocks down

US equities ended in the negative territory on Wednesday, as elevated bond volatility impacted investors' sentiments.

The Dow Jones Industrial Average plunged 0.66% to end at 51,179.87, while the S&P 500 slipped 0.22% to 7,801.77. The tech-heavy NASDAQ Composite shed 0.22% to 27,538.69.

The benchmark 10-year bond yield hit its highest level since April 2002 at 5.365%. The 30-year Treasury yield also reached its highest level since May 2002 at 5.732%.

However, the 10-year bond retreated later after the US Treasury sold $39 billion in 10-year notes.

Banking stocks, including Goldman Sachs, Bank of America, JP Morgan, Citigroup and Wells Fargo, closed in red.

Shares of Meta Platforms Inc, NVIDIA Corporation, CrowdStrike Holdings, Microchip Technology Inc and ON Semiconductor Corp also ended lower.

Shares of technology player Penguin Solutions Inc jumped 13% after its fourth quarter results beat expectations. Adjusted revenue stood at $1 per share, with revenue of nearly $567 million.

The Federal Reserve also released minutes from the September meeting, which showed officials could hike key interest rates before the year-end.

"With regard to the outlook for monetary policy beyond the current meeting, most participants assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end. Participants emphasised, however, that they approached each meeting with an open mind and decisions at future meetings would depend on incoming information and its implications for the outlook and the balance of risks," the minutes said.

Brent Crude, the international standard, rose 1.76% to $101.96 per barrel. West Texas Intermediate gained 1.5% to $89.60 a barrel.

Stocks that ended in green include Moderna, Micron Technology, Apple, Walmart, Super Micro Computer, SanDisk, Netflix, Amazon and Johnson & Johnson, among others.