U.S. stocks fall as 10-year yield hits 5.09%

The Nasdaq 100 fell 0.9% to 30,459.36, while the S&P 500 lost 0.6% and the Dow Jones Industrial Average slipped 0.6%. The Russell 2000 ETF tumbled 1.4%, reflecting pressure across the market as borrowing costs climbed.

S&P Global’s flash September PMI readings showed the fastest pace of U.S. private-sector growth in more than five years, reinforcing the case that the economy is still running hot enough to keep policy tight. The 2-year Treasury yield rose 14 basis points to 4.89% and the 30-year gained 9 basis points to 5.39%, while the dollar strengthened to late July highs.

Tech and other rate-sensitive areas led losses. Alphabet fell 3.0%, Amazon dropped 1.9% and Nvidia slipped 1.7% as traders reassessed the valuation risk around large-cap growth names, while utilities and real estate also weakened. Wayfair sank 7.6% and Expedia fell 7.0%, showing how higher yields are hitting consumer and travel names tied to financing and discretionary spending.

The yield spike also redirected money into energy. West Texas Intermediate crude rose 2.4% to $92.69 a barrel after talks with Iran failed to produce a deal, lifting the Energy Select Sector SPDR Fund 1.6% and sending oil-linked stocks higher. Gold miners were among the worst performers, with the VanEck Gold Miners ETF down 4.3% as bullion fell 1.9% to $4,283.31 an ounce.

Some defensive pockets still attracted buyers. Cybersecurity names including CrowdStrike, Palo Alto Networks, Okta and Palantir each gained about 3% to 4%, even as the broader tech sector slipped, while HubSpot and Klaviyo rose after Morgan Stanley turned more constructive on software sentiment.

The next catalyst is whether Treasury yields can hold above 5% and whether more Fed officials reinforce the case for another rate increase. If they do, the pressure on Nasdaq megacaps and other rate-sensitive stocks is likely to deepen.