US close: Stocks fall as bond yields hit 2007 high
By Benjamin Chiou
Date: Wednesday 23 Sep 2026
(Sharecast News) - US stocks finished firmly lower on Wednesday as a bond sell-off sapped investor appetite for equities, with the yield on a 10-year Treasury note hitting its highest in nearly two decades.
The 10-year US Treasury yield was up 14.6 basis points at 5.116%, hitting its highest since July 2007 after oil prices abruptly snapped a five-day losing streak. Brent crude settled 3.9% higher at $103.08 a barrel, while WTI rose 1.8% to $92.16.
The Dow fell 0.7% and the S&P 500 slipped 0.8%, while the Nasdaq - which had hit another record closing high on Tuesday - pulled back 1.1%.
"A sudden spike in the oil price caught investors off guard and reminded them not to be complacent about inflationary pressures," said Dan Coatsworth, head of markets at AJ Bell.
"Brent crude spiked from $98 to nearly $102 in a matter of hours, causing the equity rally to falter and Wall Street to be in the doldrums. Sighs of frustration filled the air as investors once again moved to the edge of their seats to watch oil prices with a sense of trepidation."
The moves came after Donald Trump said US and Iranian officials held a "very good meeting" lasting about three hours during the United Nations General Assembly in New York. In his address to the UN earlier in the day, he said he faced a "big decision" on whether to pursue a deal with Tehran or "annihilate" the country.
Separately, Treasury Secretary Scott Bessent said the US was weighing whether to restrict diesel exports, with national average prices hitting $6.53 per gallon, according to AAA.
Comments from Federal Reserve governor Michael Barr were also impacting the bond market after he said further rate hikes would be necessary "to ensure inflation comes down to target in a timely fashion".
In other news, the Treasury Department announced it would repurchase $6bn in 20- and 30-year bonds on Thursday.
On the macro front, US mortgage applications fell 1,5% in the week ended 18 September, according to the Mortgage Bankers Association, extending the 4.1% decline seen in the prior week. Applications to refinance a mortgage slid 3% to its slowest pace in 18 months, while applications to purchase a home edged 1% lower, reflecting softer demand against a backdrop of rising borrowing costs and uncertainty over future property disposals. The fall comes as the 30‑year fixed mortgage rate increased to 7.12%, up from 6.97% a week earlier, and rates for 30-year mortgages with jumbo loan balances increased 12 basis points to 7.15%.
Elsewhere, US business activity accelerated sharply in September, with preliminary readings of S&P Global's composite, services and manufacturing PMIs all rising to multi‑year highs. The composite PMI climbed to 58.4 from 56.0 in August, a 62‑month peak, while the services PMI advanced to 58.7, its strongest reading in almost five years. Manufacturing also strengthened, with output up to 56.7 and the headline PMI jumping to 57.0, both of which were the highest readings since 2022. S&P Global said growth was driven by a further surge in services activity alongside a renewed pickup in factory output.
In equity news, shares in General Mills pushed higher, erasing earlier losses, after beating analysts' forecasts with its first-quarter results. The US foods group reported a 3% decline in sales as the disposal of its US yoghurt business weighed on reported growth, though revenues of $4.39bn still came in above the $4.35bn consensus estimate. Adjusted EPS was $0.75, down 13% in constant currencies but above the $0.72 expected by analysts.
Qualcomm Technologies rose after agreeing to buy robotics software firm PickNik for an undisclosed sum. The acquisition is intended to strengthen Qualcomm's commitment "to fostering an open robotics ecosystem, providing developers with the tools, software, and frameworks needed to move more efficiently from research and experimentation to prototyping, deployment, and production at scale," it said.
Dow Jones - Risers
Salesforce.Com Inc. (CRM) $237.58 1.84%
Dow Chemical Co. (DOW) $28.65 1.60%
Chevron Corp. (CVX) $205.51 1.52%
Intel Corp. (INTC) $122.60 1.25%
Boeing Co. (BA) $199.93 1.12%
International Business Machines Corporation (CDI) (IBM) $232.76 0.60%
3M Co. (MMM) $170.30 0.58%
Caterpillar Inc. (CAT) $812.02 0.50%
Amgen Inc. (AMGN) $406.09 0.39%
Verizon Communications Inc. (VZ) $46.52 0.15%
Dow Jones - Fallers
McDonald's Corp. (MCD) $238.32 -4.81%
Home Depot Inc. (HD) $296.72 -2.83%
Cisco Systems Inc. (CSCO) $106.43 -2.71%
Merck & Co. Inc. (MRK) $148.08 -1.88%
Goldman Sachs Group Inc. (GS) $936.36 -1.38%
Apple Inc. (AAPL) $337.02 -1.35%
American Express Co. (AXP) $301.96 -1.02%
Microsoft Corp. (MSFT) $500.59 -0.79%
JP Morgan Chase & Co. (JPM) $337.53 -0.73%
Coca-Cola Co. (KO) $88.09 -0.59%
S&P 500 - Risers
Illumina Inc. (ILMN) $255.38 8.79%
Western Digital Corp. (WDC) $473.69 7.37%
Seagate Technology Plc (STX) $923.86 7.18%
Cadence Design Systems Inc. (CDNS) $309.09 4.15%
Brighthouse Financial, Inc. (BHF) $51.99 3.92%
KLA-Tencor Corp. (KLAC) $187.86 3.66%
Biogen Inc (BIIB) $227.53 3.40%
Applied Materials Inc. (AMAT) $474.38 3.25%
Skyworks Solutions Inc. (SWKS) $91.45 3.24%
Lam Research Corp. (LRCX) $307.28 3.09%
S&P 500 - Fallers
Nektar Therapeutics (NKTR) $57.66 -13.03%
Gen Digital Inc. (GEN) $26.23 -10.63%
TripAdvisor Inc. (TRIP) $8.04 -9.76%
Booking Holdings Inc. (BKNG) $155.90 -9.48%
Paychex Inc. (PAYX) $104.49 -9.47%
Coterra Energy Inc. (CTRA) $32.56 -8.62%
Expedia Group Inc. (EXPE) $259.04 -7.97%
Intuit Inc. (INTU) $286.80 -6.72%
Kohls Corp. (KSS) $17.04 -6.68%
Charter Communications Inc. (CHTR) $116.61 -6.59%
Nasdaq 100 - Risers
Illumina Inc. (ILMN) $255.38 8.79%
Western Digital Corp. (WDC) $473.69 7.37%
Seagate Technology Plc (STX) $923.86 7.18%
Check Point Software Technologies Ltd. (CHKP) $141.16 5.05%
Cadence Design Systems Inc. (CDNS) $309.09 4.15%
KLA-Tencor Corp. (KLAC) $187.86 3.66%
Biogen Inc (BIIB) $227.53 3.40%
Applied Materials Inc. (AMAT) $474.38 3.25%
Skyworks Solutions Inc. (SWKS) $91.45 3.24%
Lam Research Corp. (LRCX) $307.28 3.09%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $0.34 -13.49%
Gen Digital Inc. (GEN) $26.23 -10.63%
Booking Holdings Inc. (BKNG) $155.90 -9.48%
Paychex Inc. (PAYX) $104.49 -9.47%
Expedia Group Inc. (EXPE) $259.04 -7.97%
Intuit Inc. (INTU) $286.80 -6.72%
Charter Communications Inc. (CHTR) $116.61 -6.59%
Liberty Global plc Series C (LBTYK) $9.24 -6.24%
Alphabet Inc. Class A (GOOGL) $337.83 -5.65%
Liberty Global plc Series A (LBTYA) $9.48 -5.62%
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