Here are the most important news items that investors need to start their trading day:
1. Treasury yields soar
The 10-year Treasury yield reached a dizzying new high, breaking above 4.9% for the first time since 2007 — and is edging ever closer to 5%. Meanwhile, stocks fell swiftly and none of the three major indexes traded in positive territory at any point during the session. But, there were some bright spots in the market. Netflix surged 12% after hours and Procter & Gamble was up 2.6% in regular trading on solid earnings reports (more on that later). Looking ahead, spooked investors will be watching for any assurances from Fed Chair Jerome Powell when he speaks Thursday. Follow live market updates.
2. Tale of two earnings
Earnings season is in full swing with Tesla and Netflix reporting third-quarter results after the bell Wednesday. Things weren't so hot for the EV giant as Tesla missed on both earnings and revenue for the first time since July 2019. The company also touted its long-awaited Cybertruck, saying it "remains on track for later this year," but CEO Elon Musk tempered financial expectations for the vehicle. Meanwhile, things were a little more positive for Netflix, which reported a surge in subscriber growth, thanks to its new password-sharing crackdown efforts and more interest in its ad-supported tier. Netflix, which is also dabbling in live sports, said it would raise the price of its basic and premium subscriptions.
3. Y2K all over again
Remember that new 10-year U.S. Treasury yield high? Here's an even worse number for home buyers. The average on the popular 30-year fixed mortgage rate hit 8% on Wednesday morning, according to Mortgage News Daily. That's the highest level since mid-2000. Mortgage rates often follow loosely along with the 10-year Treasury. Accordingly, demand for home loans has plummeted. To put things in perspective, the average rate on the 30-year fixed was as low as 3% just two years ago.
4. Humanitarian aid
The United States and Egypt have agreed to open a humanitarian aid corridor through Cairo's border with the besieged Gaza Strip as the conflict between Israel and Palestinian militant group Hamas enters its 13th day. U.S. President Joe Biden and Egypt President Abdel Fatah el-Sissi reached the agreement after Biden's trip to Israel, according to Egypt's readout of the leaders' phone call. The besieged and bombarded Gaza Strip faces deep supply shortages with Israel cutting off its fuel, food, electricity and water since last week. Biden said the deal will initially allow 20 trucks across.
5. Here we go again
Will it take 15 rounds of voting again? Rep. Jim Jordan of Ohio lost his bid to become speaker of the House for a second time in as many days. This time, even fewer Republicans voted for him than in the first go-round. It took Kevin McCarthy — the former speaker who was ousted from his role more than two weeks ago — 15 rounds to win the votes he needed to secure the spot. Jordan says he plans to stay in the race, and sources familiar with the matter told NBC News that there would be more voting on Thursday. Meanwhile, support is growing in Congress to empower temporary Speaker Patrick McHenry with more sway so the chamber can pass bills even if there is no permanent speaker in place.
— CNBC's Alex Harring, Samantha Subin, Lora Kolodny, Sarah Whitten, Diana Olick, Natasha Turak and Spencer Kimball contributed to this report.
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