Oil prices fell as the IEA moved to accelerate oil stock releases, while US Treasury yields remained near multi-year highs after a strong 10-year note auction.
Bitcoin declined as leverage amplified a broader crypto selloff, while Micron Technology shares gained after DA Davidson raised its price target on the stock to $3,000.
Oil prices fall as IEA accelerates stock releases
Oil prices settled lower on Wednesday after a volatile session as the International Energy Agency moved to accelerate previously announced oil stock releases and prioritize diesel supplies.
US West Texas Intermediate fell 0.55% to $88.97 while Brent crude futures were up 0.40% to $100.98.
The IEA said completing previously announced releases as quickly as possible could bring about 100 million barrels to the market.
Analysts and some governments, however, said that figure did not necessarily represent a new intervention of that size.
France is also set to release 10 million barrels of diesel from its strategic reserves, according to Franceinfo radio.
US crude inventories fell by 3.2 million barrels last week to 424.1 million barrels, according to the Energy Information Administration. Analysts had expected inventories to rise by 1.7 million barrels.
US Treasury yields hit multi-year highs
Treasury yields also remained elevated, with the 10-year yield briefly reaching 5.36%, its highest level since 2002, before retreating after a strong auction.
The 10-year yield was last around 5.286%, while the 30-year yield traded below its 24-year high at 5.67%.
The Treasury sold $39 billion of 10-year notes on Wednesday.
BMO described the auction as “strong,” with non-dealer investors accounting for a higher-than-average share of demand.
Indirect bidders, including global central banks, took 80.3% of the notes, compared with a 72.4% average across the previous 10 auctions.
Dealers bought 2.5%, well below the 9.4% average.
Still, the auction yield of about 5.3% was the highest since 2000.
Treasury yields have risen as investors assess inflation and higher energy prices, with the 10-year yield up about 60 basis points since the end of July.
Bitcoin falls as crypto market faces macro pressure
Bitcoin declined nearly 3% to around $83,313 after reaching about $86,000 earlier in the week, weighing on major cryptocurrencies.
Ethereum fell more than 4.6% to around $2,560, while XRP and Solana each declined about 5% and 3%, respectively.
Leverage amplified the decline, with CoinGlass data showing about 1.25 million traders liquidated over 24 hours, with total liquidations reaching $717.58 million.
Bitcoin liquidations totaled about $185.83 million, including $174.95 million in long positions.
The selloff also affected crypto-related stocks, including Strategy, Coinbase, Circle Internet Group and Robinhood Markets.
Higher Treasury yields and expectations for further Fed rate increases added to the pressure on risk assets.
Minutes from the Fed’s September meeting showed most officials believed another rate increase would likely be appropriate by year-end.
Micron stock rises after analyst raises target
Micron Technology shares rose about 3.74% on Wednesday after DA Davidson analyst Gil Luria raised his price target to $3,000 from $2,100.
Luria said investors remain “early in their journey” in understanding Micron and argued that the market has not fully reflected the company’s expected growth over the next three to five years.
His bullish outlook is based partly on expectations that memory-chip demand will remain above supply for several years as AI data centers expand.
He said memory is important for AI performance, with high-bandwidth memory becoming increasingly important for AI accelerators.
Micron shares have already gained about 230% this year, although their valuation multiple has declined as earnings expectations have risen faster than the stock price.
Luria also pointed to a potential share buyback program as another catalyst, with Micron expected to become free of significant restrictions on repurchases in December.
Separately, a union representing Micron workers in Taiwan authorized a strike over bonus and profit-sharing arrangements. The union said 99% of voting members supported strike authorization, although the timing of any action has not been decided.
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