Wall Street Pulls Back From Record Highs on Inflation and Rate Concerns

At the close, the Dow Jones Industrial Average had fallen 0.7 percent, while the broad S&P 500 and tech-heavy Nasdaq Composite indexes were both down 0.2 percent.

U.S. Treasury yields rose to their highest level since the spring of 2002. They then fell back, but only slightly.

At the same time, the stock market is weighed down by ongoing inflation concerns, reinforced by the fact that the price of North Sea oil futures has stubbornly remained above $100 a barrel.

Minutes released from the Federal Reserve's latest policy meeting, at which interest rates were raised, also show that members support more aggressive measures to fight inflation.

There will likely be another interest rate hike this year because current monetary policy is not particularly restrictive, says David Russell, head of market strategy at brokerage firm TradeStation.