(Bloomberg) -- The renewed bout of Treasury volatility spurred a surge in bond yields on Wednesday, dragging down stocks as traders grappled with concern over stretched valuations.Weak economic data also weighed on the equity market, suggesting an uneven recovery from the depths of the pandemic. The S&P 500 was on track for a second straight day of losses as a selloff in big tech overshadowed a rally in banks and energy producers. The Nasdaq 100 slumped 2%, while the Dow Jones Industrial Average outperformed, led by gains in Boeing Co. and American Express Co. Benchmark U.S. government yields approached 1.5%, and bonds are pricing in the highest five-year inflation expectations since 2008.The rout in Treasuries has rattled nerves across the globe amid warnings of excessive equity bullishness after the S&P 500 notched its best start for a bull market in nine decades. While there haven’t been any signs of panic among traders, concerns over elevated valuations have emerged. The U.S. stock benchmark’s earnings yield -- how much profits you get relative to share prices -- was about 1.7 percentage points above 10-year rates: the smallest advantage in three years.“Volatility has picked up a little bit, we’ve had bigger up days and down days,” said James Ragan, director of wealth management research at D.A. Davidson. “The focus is still on rising interest rates and how that’s impacting valuations on some of the higher multiple sectors.”Data Wednesday showed that growth at U.S. service providers slowed to a nine-month low in February, when severe winter weather gripped much of the nation and limited activity. Meanwhile, the number of employees at U.S. businesses rose by less than expected, underscoring the jobs market’s struggle to recover despite a decline in Covid-19 infections in recent weeks.Still, Federal Reserve Bank of Chicago President Charles Evans said that “we’ve really been looking for 2021 to be the year where we strongly rebound.” He added that the additional stimulus currently under debate will be very helpful in providing support. President Joe Biden has agreed to moderate Democrats’ demands to narrow eligibility for stimulus checks, but rejected a push to trim extra unemployment benefits, according to a Democratic aide.Elsewhere, oil jumped on a government report showing a record drop in domestic fuel inventories in the aftermath of a deep freeze that shuttered refineries in the U.S. South.Some key events to watch this week:OPEC+ meeting on output Thursday.U.S. factory orders, initial jobless claims and durable goods orders are due Thursday.The February U.S. employment report on Friday will provide an update on the speed and direction of the nation’s labor market recovery.These are some of the moves in markets:StocksThe S&P 500 dipped 0.6% as of 1:47 p.m. New York time.The Stoxx Europe 600 Index was little changed.The MSCI Asia Pacific Index gained 1.1%.The MSCI Emerging Market Index advanced 1.2%.CurrenciesThe Bloomberg Dollar Spot Index increased 0.2%.The euro decreased 0.1% to $1.2078.The Japanese yen depreciated 0.2% to 106.93 per dollar.BondsThe yield on 10-year Treasuries rose eight basis points to 1.47%.Germany’s 10-year yield climbed six basis points to -0.29%.Britain’s 10-year yield rose nine basis points to 0.779%.CommoditiesWest Texas Intermediate crude advanced 3.2% to $61.68 a barrel.Gold slid 1.2% to $1,716.70 an ounceSilver fell 1.9% to $26.25 per ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.