Stock Market Today: Dow Falls Again As Bond Yields Hit Multidecade Highs

TLDR

• The Dow Jones Industrial Average fell for a third straight session as Treasury yields climbed to levels not seen in decades.
• The 10-year Treasury yield rose to 5.223%, a level last reached in June 2007.
• Oil prices jumped, with Brent crude closing above $106 per barrel and WTI crude near $94.61 per barrel.
• Traders now see a nearly 71% chance the Federal Reserve raises rates again in October.
• Oracle shares dropped 3.5% after a report on a delayed New Mexico data center project.

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US stocks struggled again this week as rising bond yields put pressure on the market. The Dow Jones Industrial Average dropped for a third straight session on Thursday, sliding 161.61 points, or 0.31%, to close at 51,349.98.

The S&P 500 slipped 0.02% to 7,704.13. The Nasdaq Composite managed a small gain of 0.01%, closing at 26,939.37.

Bond Yields Reach Multidecade Highs

The main story behind the market’s struggles is the bond market. The 30-year Treasury bond yield hit 5.501%, its highest point since June 2004.

The 10-year Treasury yield, which affects mortgage rates, climbed to 5.223%. That is the highest level since June 2007. The 2-year Treasury yield also rose, reaching 4.941%.

Unbelievable.

3 hours later and the 10Y Note Yield is now above 5.20% for the first time in 19 years.

The 10Y Note Yield is now up +50 basis points in 30 days and +30 basis points in 2 days.

Even more remarkable is that the average American has no idea this is happening. Yet.… pic.twitter.com/p5BOJfVIEy

— The Kobeissi Letter (@KobeissiLetter) September 24, 2026

Higher yields make borrowing more expensive for consumers and businesses. This comes at a time when many households are already dealing with higher fuel costs.

As yields rose, so did expectations for further Federal Reserve rate hikes. According to the CME FedWatch tool, traders now put the odds of another rate increase in October at nearly 71%. That is up from about 55% just a week earlier.

Jason Stephens, founder of Evertern Wealth, said the bond market may be the most important one to watch right now. He pointed out that the bigger question is not whether the Fed raises rates again, but how long rates stay elevated.

Stephens said a 10-year Treasury yield above 5% could affect housing, corporate borrowing, private markets, and stock valuations over time.

Oil Prices And Economic Data Add Pressure

Oil prices also rose during the week. Brent crude, the international benchmark, gained more than 3% to close above $106 per barrel. US West Texas Intermediate crude climbed 2.7% to settle at $94.61 per barrel.

Stephens called energy one of the biggest swing factors right now. He said any quick move in oil prices tied to the Middle East conflict feeds directly into inflation and interest rate concerns.

Despite the market pressure, business activity has stayed strong. Readings from S&P Global’s manufacturing and services purchasing managers’ indexes this week showed continued growth in the US economy.

Stephens described the current environment as a bit of a contradiction. Investors are worried about rates because the economy is performing well, not because it is weakening.

Oracle was one of the biggest laggards on Thursday. Shares fell 3.5% after Bloomberg News reported the company was citing force majeure to protect itself if a data center project in New Mexico faces delays.

By Friday morning, US stock futures were steady. Contracts tied to the Dow and S&P 500 edged higher, while Nasdaq-100 futures traded up 0.2%.

Oil prices eased slightly on Friday, with WTI crude futures falling to $92 per barrel and Brent crude trading near $105 per barrel. Average gas prices in the US stood near $4.50.

A consumer sentiment reading from the University of Michigan is due Friday. It will offer a fresh look at how Americans view inflation heading into the fall.