U.S. Stocks Fall as Treasury Yields Test Multidecade Highs

Dow Jones
Yesterday
 
 

U.S. stocks fell as volatility in Treasury yields sparked concerns about mortgage rates and corporate credit costs.

The Dow Jones Industrial Average fell 341.41 points, 0.66%, to 51179.87. The S&P 500 lost 17.16 points, or 0.22%, to 7801.77, down from a record high. The tech-heavy Nasdaq Composite slipped 61.20 points, or 0.22%, to 27538.69.

The Russell 2000 index of small-cap stocks fell 1.3% to 2793.20, and is roughly 9% below record highs from earlier this year, putting it on the cusp of correction territory.

Stocks were down sharply in early trading after a recent spike in Treasury yields intensified. Stocks pared losses when the yields eased in the wake of a strong auction.

The yield on the two-year Treasury declined 0.027 percentage point to 4.762%. The yield on the 10-year Treasury note rose 0.006 percentage point to 5.276%. The yield on the 10-year hit a 24-year high of 5.361% before a well-subscribed auction of the notes. The yield on the 30-year bond rose 0.020 percentage point to 5.660%, on the verge of its highest level since 2002.

The worldwide "bond bear market" in 2026 is largely a response to changing central-bank policy, strategists at brokerage Bank of America Global Research said in a note to clients.

Most Fed officials anticipated another rate hike this year during discussions at the September meeting, according to minutes released Wednesday. Some officials cast the plan as insurance against future inflation issues rather than a response to current conditions.

The bond moves are causing pain in the mortgage market. The average fixed 30-year mortgage rate in the U.S. was 7.52%, hovering around three-year highs, according to Bankrate.

The SPDR S&P Homebuilders exchange-traded fund, which tracks a basket of builders, declined 2.6% and is now down by more than 8% year to date.

The U.S. dollar resumed its climb against rivals, testing multiyear highs, as investors sought cover from risk.

Dollar-sensitive gold futures fell $45.40, or 1.1%, to $4113.80 a troy ounce.

Oil futures fell $1.16, or 1.3%, to $88.28 a barrel in New York. Houthi rebels mounted more assaults on Saudi Arabian oil infrastructure while production in the Gulf of Mexico was shut in due to storm fears.

The energy sector is vying with the technology to be the leading industry group on the S&P 500 year to date due to the impact of the Iran war.

British oil major Shell expects to report that its refining margin hit a record high in the third quarter, as attacks on shipping in the Middle East restrict global fuel supplies.

Shares of tractor and combine makers fell sharply after the Federal Trade Commission and Agriculture Department launched a probe into potential anticompetitive practices in agricultural equipment markets. Deere fell 3.8% to $656.87. Agco declined 6.1% to $109.15. Caterpillar shed 5.7% to close at $813.83.

An investment vehicle controlled by Canada's Weston family struck a deal to buy U.K. pharmacy chain Boots from the investment firm Sycamore Partners for $8.9 billion including debt. Sycamore separated Boots from former owner Walgreens after a 2025 takeover.

South Korean electronics giant LG Electronics forecast third-quarter operating profit well below market estimates amid lingering business uncertainties.

ChatGPT's guardrails for underage users fall short of OpenAI's commitments to child safety, according to a report from the AI arm of the nonprofit group Common Sense Media.

Frasers Group, the retail conglomerate founded by British billionaire Mike Ashley, bought a stake in embattled sportswear brand Under Armour.

Disney said its streaming platform would livestream the Super Bowl in 2027.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10