S&P 500 dips as stocks remain in rut this year amid rising rates, Dow down 200 points; European stocks close slightly higher despite rising bond yields, UK inflation 
The major averages pulled back on Wednesday, despite several strong earnings reports, as investors stayed cautious amid elevated government bond yields. The Dow Jones Industrial Average fell about 200 points, dragged down by a 2.6% decline in Caterpillar’s stock. The S&P 500 fell 0.4%. The technology-focused Nasdaq Composite dipped 0.5%. 
Stocks fluctuated between losses and gains on Wednesday. At its session low, the Nasdaq was on track to close in correction territory, more than 10% off its record close in November. 
The U.S. 10-year Treasury yield topped 1.9% earlier on Wednesday, its highest level since December 2019. The 10-year rate started the year around 1.5%. 
Equities declined despite a slew of strong corporate earnings results. Bank of America beat Wall Street estimates as it released pandemic-related loan loss reserves. Shares rebounded 1%, a day after sliding 3.4%. Other bank stocks, however, were in the red. 
Morgan Stanley saw its stock rise 2.5% after the bank’s fourth-quarter profit topped estimates. It also experienced a 13% jump in equities trading revenue. 
Procter & Gamble shares popped 4.1% after the consumer giant reported fiscal second-quarter earnings and revenue that topped Wall Street’s expectations. The company raised its outlook for sales growth. 
Shares of Sony tumbled 2.7% the day after Microsoft said it is buying video game publisher Activision Blizzard for nearly $69 billion. Sony’s PlayStation competes with Microsoft’s Xbox consoles. The drop in Sony’s stock comes after shares slid 7.2% on Tuesday. 

The pan-European Stoxx 600 closed up by 0.2% after initially starting the session in the red. Mining stocks led the gains, climbing 2.7%. 
Burberry also reported a strong set of results and lifted its profit outlook on the back of accelerating full-price sales growth. The British luxury fashion house’s shares traded 6.3% higher. 
Source: CNBC, Investing.com