The slight increase in the 10-year Treasury yield is putting pressure on the stock market.

On Wednesday, the U.S.  rose again as traders analyzed the latest comments from Federal Reserve officials regarding the direction of interest rate cuts.

On Tuesday, the yield on the 10-year Treasury increased by more than 2 basis points to 4.206%, surpassing its previous high in three months.

On Wednesday at 4 a.m. E.T., the 10-year Treasury yield increased by 2 basis points to 4.227%.

The 2-year Treasury yield increased to 4.050%, marking a 1 basis point rise. Yields and prices move in opposite directions, with one basis point equal to 0.01%.

Equities are under pressure due to higher Treasury yields, as evidenced by the decline in U.S. stock futures overnight, following the S&P 500's first back-to-back loss since early September.

Despite a half-point rate cut from the Federal Reserve in September, the 10-year Treasury yield has increased due to robust economic data and deficit concerns.

The Fed had forecast another half-point worth of cuts before the year ends, but traders are now worried that the central bank may not reduce rates as much as expected.

This week has been hectic for Fed commentary, with several policymakers giving speeches.

On Wednesday, Fed Governor Michelle Bowman and Richmond Fed President Thomas Barkin will speak at conferences in Philadelphia and Virginia, respectively, and their comments will be closely watched by investors.

The Fed's Beige Book, which evaluates economic conditions in its 12 districts, will be released on Wednesday.