BOSTON/LONDON—Wall Street took a breath on Wednesday, pushing stocks and Treasury yields down after both had powered higher earlier in the week as investors took in the strength of the economy and hawkish comments from U.S. policymakers. Two-year U.S. Treasury yields are up sharply so far in March and set for their biggest monthly jump since 2004. Investors have been relatively sanguine about the implications of higher yields on stock market valuations, with many choosing to buy back in after a bruising few months for equity prices. That narrative took a pause on Wednesday as U.S. stocks fell in morning trading. The Dow Jones Industrial Average fell 238.35 points, or 0.68 percent, to 34,569.11, the S&P 500 lost 20.62 points, or 0.46 percent, to 4,490.99 and the Nasdaq Composite dropped 40.81 points, or 0.29 percent, to 14,068.01. European stocks fell nearly 1 percent, with a pan-European equity benchmark hitting a …