Traders work at the New York Stock Exchange on Oct. 7, 2026.
NYSE
U.S. equities fell on Wednesday as pressure continued to build in the bond market, pushing Treasury yields to levels not seen in more than two decades.
The Dow Jones Industrial Average was down 273 points, or 0.5%, while the S&P 500 shed 0.2%. The Nasdaq Composite slipped 0.4%.
Investors were spooked by the benchmark 10-year Treasury note yield reaching its highest level since April 2002 at 5.365% on Wednesday. The 30-year bond yield also hit its highest level since May 2002 at 5.732%.
The 10-year yield later backed off its high of the day after a solid auction in which the Treasury sold $39 billion in 10-year notes. The move in the yield, which was last little changed, helped stocks pare their declines.
“With the level of rates where they are and the rise that we’ve seen, I think it’s fair to characterize the fact that the margin for error has narrowed as it relates to earnings,” Mike Dickson, head of research and quantitative strategies at Horizon Investments, said to CNBC, before adding that earnings could “still carry the market higher.” He continued, “The level of yields seem very justified, but it doesn’t make them irrelevant.”
The latest rise in yields impacted key areas of the market. Bank stocks, for instance, dropped as investors feared higher interest rates would hinder lending activity. Shares of Goldman Sachs moved down nearly 2%, as did Citigroup. Others such as Bank of America, Wells Fargo and JPMorgan shed around 1% each.
Technology stocks also came under pressure amid worries that higher borrowing costs would limit the artificial intelligence buildout. CrowdStrike shares were lower by almost 4%, while Palo Alto Networks and Meta Platforms lost more than 3% and 2%, respectively.
Even with the latest rise in yields, inflation expectations appear “very well anchored,” Dickson said. “If the 10-year started rising because inflation expectations become unanchored, well now it can get a little bit out of control.”
U.S. crude prices hovered just below $90 per barrel on Wednesday. International Brent crude futures, meanwhile, traded marginally higher at around $101 per barrel. Those moves led yields, which took a breather in the previous session, to resume the recent surge that drove them to multiyear highs.
The S&P 500 closed above 7,800 for the first time on Tuesday, led by gains in chipmakers. Bond yields also eased, giving equities a boost.
