U.S. stocks fell as volatility in Treasury yields sparked concerns about mortgage rates and corporate credit costs. The Dow Jones Industrial Average fell 341.41 points, 0.66%, to 51179.87. The S&P 500 lost 17.16 points, or 0.22%, to 7801.77, down from a record high. The tech-heavy Nasdaq Composite slipped 61.20 points, or 0.22%, to 27538.69. The Russell 2000 index of small-cap stocks fell 1.3% to 2793.20, roughly 9% below record highs.
Stocks pared losses when the yields eased in the wake of a strong auction. The yield on the 10-year Treasury note hit a 24-year high of 5.361% before a well-subscribed auction. The yield on the 30-year bond rose to 5.660%, on the verge of its highest level since 2002.
The worldwide “bond bear market” in 2026 is largely a response to changing central-bank policy, strategists at brokerage Bank of America Global Research said. The bond moves are causing pain in the mortgage market. The average fixed 30-year mortgage rate in the U.S. was 7.52%, hovering around three-year highs.
The U.S. dollar resumed its climb against rivals, testing multiyear highs. Dollar-sensitive gold futures fell $45.40, or 1.1%, to $4113.80 a troy ounce. Oil futures fell $1.16, or 1.3%, to $88.28 a barrel in New York. Shares of tractor and combine makers fell sharply after the Federal Trade Commission and Agriculture Department launched a probe into potential anticompetitive practices in agricultural equipment markets. Deere fell 3.8% to $656.87. Agco declined 6.1% to $109.15. Caterpillar shed 5.7% to close at $813.83.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing