The Dow Jones Industrial Average dropped 94.45 points, or 0.25%, to close at 37,266.67, the S&P 500 slipped 0.56% to close at 4,739.21, and the Nasdaq Composite shed 0.59%, closing the session at 14,855.62

Stocks dropped Wednesday as Treasury yields tracked higher after the release of stronger-than-expected U.S. economic data.

The Dow Jones Industrial Average dropped 94.45 points, or 0.25%, to close at 37,266.67. This marked the third consecutive day of losses for the 30-stock index. The S&P 500 slipped 0.56% to close at 4,739.21, and the Nasdaq Composite shed 0.59%, closing the session at 14,855.62.

Charles Schwab declined 1.3% after reporting mixed quarterly results. Walgreens and Caterpillar both shed nearly 3%, leading the Dow’s losses. Meanwhile, Boeing added 1.3%, making it one of the biggest gainers in the Dow after recent sharp losses.

Retail sales data for December came in stronger-than-expected, suggesting a resilient consumer and putting aggressive rate cuts from the Fed into doubt. Retail sales were 0.6% higher from November, and gained 0.4% month-over-month, excluding autos. Economists polled by Dow Jones had estimated a 0.4% month-to-month rise in retail sales and 0.2% ex-autos.

The 10-year Treasury yield was last trading around 4 bps higher at 4.102%, continuing its rise from Tuesday after Federal Reserve Governor Christopher Waller warned easing monetary policy may come slower than expected.

So far, traders are pricing in a nearly 57% probability that the Fed begins cutting rates in March as hopes mount for a pivot, according to CME Group’s FedWatch tool.

By the end of this year, rates will likely be lower than they are now — but it is not going to be a straight line, said Thomas Martin, senior portfolio manager at Globalt Investments.

In the meantime, people who are positioned aggressively for more rate reductions and for higher stocks, are maybe pulling in their horns and getting a little bit more diversified. You do want to hold bonds, but you also want to hold stocks, added Martin.