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Wall Street slips as oil rises, Treasury yields jump, Fed expectations grow

Two-year Treasury yields touched their highest level since 2024, and 10-year yields hit a high not seen since 2007, as a stronger September business activity survey pushed rates higher.

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Wall Street fell on Wednesday, with declines led by Alphabet and Amazon as Treasury yields climbed and oil prices rose more than 3%, Reuters reported. The S&P 500 energy sector index rose 1% after comments by Iran's president, and markets also weighed renewed worries over Middle East tensions. A survey indicating US business activity surged to a more than five-year high in September helped push government bond yields higher and increased expectations that the Federal Reserve will raise rates at its October meeting, according to Reuters. Two-year Treasury yields touched their highest level since 2024, while 10-year yields reached their highest level since 2007. Reuters also cited Fed comments, including remarks from Federal Reserve Governor Michael Barr, who said the central bank will likely need additional rate hikes while inflation remains above target. Lauren Cassidy, chief investment officer at Founders 100 ETF, said the stock market is seeking resolution to the Middle East conflict, and without it investors may face higher rates for longer. In company moves, Meta Platforms rose 2.3% after a strong reception of its Muse AI assistant, while Alphabet fell 3.5% and Amazon dropped 2.4%. The Nasdaq finished down 1.07% at 26,953.87, the Dow slipped 0.54% to 51,583.98, and the S&P 500 was held down as seven of the 11 sector indexes declined, led by financials.

Latest closeS&P 500 7,706.03 ▼0.8%|Nasdaq Comp. 26,936.04 ▼0.7%|Dow Jones 51,511.59 ▼1.0%

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