Wall Street slips as 30‑year Treasury yields hit 24‑year high, ending record streaks

Wall Street closed lower on Wednesday as 30‑year Treasury yields climbed to a 24‑year high, pulling the S&P 500, Dow and Nasdaq off their record‑setting streaks. All three major indexes fell modestly; the S&P 500 lost 17.78 points (0.23%) to 7,801.15, the Nasdaq dropped 66.50 points (0.24%) to 27,533.39, and the Dow slipped 355.91 points (0.69%) to 51,165.37. The small‑cap Russell 2000 underperformed its larger‑cap peers and the Philadelphia chip index fell more than 2%. Brent crude briefly rose above $100 a barrel before easing after the International Energy Agency agreed to speed up diesel stock releases. The rally‑day rise in oil prices, driven by Iran‑related supply worries, revived inflation concerns and added pressure on long‑dated bonds. Fed minutes from the September meeting showed a split among policymakers: some backed the hike to offset energy shocks, others to tame demand‑driven inflation. Market pricing now puts the chance of a second consecutive Fed hike in October at under 20%, down from 37.6% a week earlier, according to CME’s FedWatch. Thomas Martin, senior portfolio manager at GLOBALT in Atlanta, said investors are waiting for oil relief to ease rate worries and that the third quarter failed to be the expected weak period. SpaceX shares fell after reports the company is seeking $40 billion in financing to buy Nvidia chips. Analysts still expect S&P 500 earnings to grow about 30.6% year‑on‑year for the July‑September quarter.

Context

The rise in long‑term Treasury yields signals that investors expect higher inflation or slower growth, which typically makes borrowing more expensive and can dampen stock prices.