Key Highlights

● Long-dated Treasury yields rose while short-term yields eased.

● Utilities and real estate were the weakest S&P 500 sectors.

● Technology and energy led the market the same day.

● Regional banks also slipped as the higher 10-year yield weighed.

The Treasury yield curve got steeper, and the stock market's rate-sensitive corners felt it. After the Federal Reserve left its benchmark rate range unchanged, the two-year Treasury yield ended slightly lower while the 10-year and 30-year yields climbed, with the 10-year pushing past a key psychological threshold in its biggest daily gain in a month.

A steepening curve can reflect expectations of stronger growth, stickier inflation or investors demanding more compensation for holding long-dated debt, and the Fed's statement gave a clear trigger, saying economic activity is expanding at a strong pace while inflation remains elevated.

The Losers: Bond Proxies

Higher long-term yields hit sectors that investors often treat as bond substitutes. Utilities were the worst-performing S&P 500 sector, followed by real estate, since these groups tend to pay steady dividends that look less attractive when Treasury yields rise.

Regional banks also fell modestly as higher 10-year yields weighed, and homebuyers face pressure too, with mortgage rates climbing over the past month.

The Winners: Growth and Energy

Technology led the market, powered by chipmakers, with the chip index rising for a fourth straight session, while energy was the other standout as crude settled back above $100 a barrel.

Overall, eight of 11 S&P 500 sectors rose, though leadership was concentrated, with the equal-weight S&P 500 slipping slightly even as the main index advanced.