US stocks pulled back from record highs on Thursday as a relentless rise in bond yields squeezed valuations across Wall Street.

The 10-year Treasury yield hovered around 5.35 percent, a level that makes bonds an increasingly attractive alternative to equities. The S&P 500 and Nasdaq both retreated from their recent peaks.

Gold extended its safe-haven rally to around $4,136 an ounce as investors hedged against both inflation and geopolitical risk. Bitcoin traded near $82,500.

The moves reflect a market repricing the path of interest rates. Strong economic data and hawkish signals from Federal Reserve officials have convinced traders that rates will stay higher for longer.

Higher yields hit growth stocks hardest, since their future earnings are worth less when discounted at higher rates. Banks, by contrast, can benefit from wider lending margins.

Analysts say the next catalysts are upcoming inflation and jobs data, which will shape expectations for the Fed’s December meeting.