S&P 500 dipped 0.6% to 7,800, the first time it topped 7,800 after Tuesday’s record close, while the 10‑year Treasury yield leapt 8 bps to 5.356%—the highest since April 2002.
Dow Jones Industrial Average fell 451 points, a 0.9% drop, and Nasdaq Composite slipped 0.9%. Futures mirrored the trend: Dow futures down 0.4%, S&P 500 futures off 0.2%, Nasdaq‑100 futures off 0.4%. Oil added fuel to the sell‑off; U.S. crude futures climbed 1% to $90.15 a barrel, and Brent rose to $101.92.
The surge in yields came ahead of a Wednesday Treasury auction that will sell $39 billion of 10‑year notes, tightening market liquidity. Analyst John Patel of KPMG noted the yields’ jump “signals heightened inflation anxiety and a stronger case for further Fed tightening.”
S&P 500's rise on Tuesday was largely driven by gains in chipmakers like NVIDIA and Intel, but the yield climb outweighed that momentum. The 30‑year Treasury yield also jumped 8 bps to 5.725%, its highest level since May 2002.
The Fed’s September policy minutes, expected later today, are the market’s next focus; any hint of a rate hike pause could temper the sell‑off, while a continuation could deepen it. Traders remain split on whether the yield rise reflects a one‑off adjustment or the start of a prolonged tightening cycle.