US 10-year Treasury Yield

The benchmark yield had dipped earlier in the day, as a fall in oil prices and U.S. yields supported buying sentiment for bonds

The Dow Jones Industrial Average fell 0.86%, to 33,706.15, the S&P 500 lost 1.29%, to 4,228.37, and the Nasdaq Composite dropped about 2%, to 12,705.22

The MSCI world equity index, which tracks shares in 50 countries, was down 1.14%. The pan-European STOXX 600 index was down 0.26%.

Salesforce, Capri Holdings rise after lifting profit outlook; US 10-year Treasury yields spike to two-week high

"Gold is behaving less like an arrow and more like a feather. It's drifting a little this way, and a little that way on the winds that drive markets," independent analyst Ross Norman said.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.76%, with most markets in the red, though a resurgence in property stocks helped greater China markets

Turkey's shock weekend decision to replace its hawkish central bank governor also supported the dollar's safe-haven appeal.

Treasury yields reached their highest since January 2020, continuing their climb after being briefly held back by the Federal Reserve's dovish words

The rupee on Wednesday tumbled to a 14-month low, while bond yields hardened and equities fell on continued pull-out by foreign investors from various asset classes