US stocks retreat as strong economic data fuels rate hike bets; travel stocks slide on AI disruption

US markets declined as strong September PMI data, reaching a high since 2021, sparked concerns over further Federal Reserve tightening. The 10-year Treasury yield surged to 5.106%, its highest since 2007, pressuring high-valuation sectors. Travel stocks like Expedia and Airbnb dropped over 6% as AI agent Muse threatens traditional search-based business models. Meanwhile, oil prices rebounded above $100 per barrel amid geopolitical tensions, further complicating the inflation outlook. Bitcoin and Ethereum also saw pullbacks alongside rising interest rates.