The Dow Jones industrial average and S&P 500 ended at record highs for a third straight day on Wednesday, while U.S. two-year Treasury yields and the dollar hit multi-year peaks after upbeat U.S. economic data reinforced expectations for interest rate hikes.
Gains in industrial stocks helped the U.S. indexes, with the S&P 500 industrial sector .SPLRCI ending up 0.8 percent. The S&P's gains were meager, while the Nasdaq slipped after a drop in tech heavyweights ahead of the Thanksgiving Day holiday on Thursday and an early market close on Black Friday. A 10.5 percent drop in Eli Lilly & Co (LLY.N) also weighed on the S&P.
The Nasdaq had touched record closing and intraday highs over the past two days. Expectations that markets would benefit from U.S. President-elect Donald Trump's policies have helped boost shares.
European shares steadied, with basic resources companies underpinning the broader market following a rise in metals prices. The European basic resources index .SXPP ended 1.2 percent firmer after hitting its highest level since mid-2015.
U.S. two-year Treasury note yields US2YT=RR rose to a 6-1/2 year high of 1.151 percent, while benchmark 10-year notes US10YT=RR hit 2.417 percent, the highest since July 2015. The peaks were touched after data showed that U.S. manufactured capital goods rebounded in October, boosting expectations for faster economic growth.