Dow drops 451 points as Treasury yields hit 24-year highs Quartz · Michael M. Santiago / Getty Images Cris Tolomia Wed, October 7, 2026 at 10:01 AM EDT 2 min read CL=F +0.49% ^DJI -1.05% ^GSPC -0.56% ^IXIC -0.68% U.S. stocks retreated Wednesday under the dual pressure of surging Treasury yields, which reached levels unseen in over two decades, and rising oil prices. The Dow Jones Industrial Average lost 451 points, or 0.9%; the S&P 500 fell 0.6%; and the Nasdaq Composite declined 0.9%.
The benchmark 10-year Treasury yield rose more than 8 basis points to 5.356%, reaching its highest level since April 2002. The 30-year bond yield gained more than 8 basis points to 5.725%, hitting its highest level since May 2002.
Oil prices added to the pressure on equities. U.S. crude climbed above $90 per barrel on a 1% gain, while international Brent crude futures were up nearly 1% to approximately $102 per barrel. The energy-price advances pushed yields to extend their recent march higher after a pause in the prior session.
Wednesday's moves come ahead of a planned Treasury auction of $39 billion in 10-year notes. Investors are also awaiting the release of minutes from the Federal Reserve's September meeting, at which the central bank raised interest rates for the first time since 2023. Markets will be watching the minutes for any signals about where the Fed stands on inflation and whether additional rate hikes remain on the table, according to The Wall Street Journal.
Wednesday's decline followed a strong session Tuesday in which chipmaker-driven momentum lifted the S&P 500 past 7,800 for the first time, with a pullback in bond yields adding to the tailwind.
Nancy Tengler, CEO and CIO of Laffer Tengler, said the market's current dynamics remain favorable for a longer bull run. "Stocks have gotten cheaper since January which is ironic, since we're hitting all-time highs," Tengler told CNBC. "I don't mind multiple compression because it tells me that this bull market is sustainable and it elongates it."
In Europe, French government bond yields ticked up on Wednesday, though they held beneath last week's peaks, which had been fueled by anxiety over France's budget outlook and drawn comparisons to past eurozone turmoil, according to The Wall Street Journal. Attacks by Yemen's Houthi rebels on Saudi Arabia kept tensions elevated in the Middle East, the Journal added.
