The strong 58.4 flash PMI signals resilient economic activity, reinforcing expectations that inflationary pressures may remain persistent. The resulting rise in the 10-year Treasury yield to around 5.11%, alongside Barr’s comments that further rate hikes are likely, increases discount-rate pressure on equities, particularly growth and technology stocks. The Nasdaq’s 1.13% decline therefore reflects heightened sensitivity to higher yields, while the broader market also weakened. Future inflation, employment and Fed guidance will remain important in determining whether elevated yields and monetary-policy pressure persist.