A sharp increase in Treasury rates jolted Wall Street on Wednesday, sending stocks tumbling at the start of another month in what has been a volatile year for the market.

The S&P 500 finished 0.7% down after a strong start gave way to tumultuous trading. The Dow Jones Industrial Average sank 0.5%, while the Nasdaq dropped 0.7%.

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The S&P 500 dropped 30.92 points to 4,101.23. The Dow fell 176.89 points to 32,813.23, after gaining 282 points earlier. The Nasdaq Composite Index fell 86.93 points to 11,994.46. It too finished in the negative after giving up a 1.3% gain early on.

Smaller company stocks also lost ground. The Russell 2000 index dropped 9.22 points, or 0.5%, to 1,854.82.

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The Fed has signalled it may continue raising its key short-term interest rate by double the usual amount at upcoming meetings in June and July. Speculation built last week that the Fed may consider a pause at its September meeting, which helped stocks to rise. But such hopes diminished after Wednesday’s manufacturing report from the Institute for Supply Management.

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Following the reports, traders are now betting on a 60% probability that the Fed will raise its benchmark short-term rate to a range of 2.25% to 2.50% at its September meeting. A week ago, the majority of bets were on a lower level, at a range of 2% to 2.25%, according to CME Group.

The yield on the two-year Treasury, which tends to follow expectations for Fed moves, jumped with those expectations. It rose to 2.66%, up from 2.56% just before the manufacturing report’s release.

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The 10-year Treasury yield rose to 2.92% from 2.84% just before the report’s release.

Airlines and stocks of other travel-related companies were some of Wednesday’s biggest losers on Wall Street amid worries that inflation is slicing away their earnings.

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Delta Air Lines, for example, said it expects to see fuel costs of $3.60 to $3.70 per gallon this quarter, up from its prior forecast of up to $3.35. Even outside of fuel, Delta said expenses could soar up to 22% above 2019 levels on a per-seat basis. That’s up from an earlier forecast of 17%,

Delta’s stock fell 5.2% even though it also said revenue trends are strengthening. With passengers paying higher fares, Delta said it may get a key revenue measure fully back to 2019 levels.

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Norwegian Cruise Line and United Airlines each lost 4.5%.

On the winning side were energy stocks, which rose with the price of crude oil. ConocoPhillips gained 3%, and Exxon Mobil rose 1.9% as a barrel of benchmark U.S. crude rose 0.5% to settle at $115.26. Brent crude, the international standard, added 0.6% to $116.29.

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The biggest gain in the S&P 500 came from Salesforce.com, which reported a stronger profit for the latest quarter than analysts expected and raised its forecast for the year. Its stock rose 9.9%.