Stock market today: Dow, S&P 500, Nasdaq fall as 10-year yield surges, markets eye looming Trump-Xi meeting

US stocks fell on Wednesday morning as Treasury yields surged and investors monitored US diplomatic efforts with Iran and China, as well as a recent rally in tech stocks.

The Dow Jones Industrial Average ( ^DJI ) traded near the flat line, while the S&P 500 ( ^GSPC ) declined by 0.5%. The Nasdaq Composite ( ^IXIC ) dropped by 1% after the tech-heavy index had posted back-to-back record highs this week.

The 10-year Treasury yield ( ^TNX ) spiked above 5% again to its highest intraday level since 2007.

President Trump is expected to greet Chinese President Xi Jinping at Joint Base Andrews, kicking off Xi's first visit to Washington, D.C., in 11 years. Experts don't expect any major policy breakthroughs , but the world leaders are expected to discuss trade, the war in Iran, rare earths, and artificial intelligence.

Any developments in AI policy are sure to generate interest among tech investors, particularly after Anthropic ( ANTH.PVT ) CEO Dario Amodei penned an essay urging companies to pace AI development cooperatively. A who's who of Silicon Valley executives, including Nvidia's ( NVDA ) Jensen Huang, OpenAI's ( OPAI.PVT ) Sam Altman, and Google's ( GOOG ) Sundar Pichai, will attend a dinner with Presidents Trump and Xi on Thursday.

Oil prices were little changed as a potential thaw in US-Iran relations remained uncertain. President Trump said US and Iranian officials met for several hours at the UN on Tuesday, rekindling hopes of a truce between the two nations. Brent crude oil futures ( BZ=F ), the global benchmark, traded below $100 per barrel, while WTI crude futures fell below $91.

On the economic calendar, S&P's gauge of US business activity expanded at a faster pace than economists expected. On the earnings front, shares of Cracker Barrel Old Country Store ( CBRL ) jumped 8% after the restaurant chain reported better-than-expected results.

Readings on the strength of US business activity rose across the board, expanding more than expected across all three major measures.