Stories
Dow Jones Plunges 350 Points as Bond Yields Soar, Nasdaq Sells Off
- •Wall Street indices experienced profit booking on Wednesday, September 23, driven by rising bond yields and a rebound in oil prices.
- •The Dow Jones fell 350 points, reversing previous gains, while the S&P 500 declined 0.75% and the Nasdaq retreated 1.1% from record highs.
- •Bond yields surged, with the 10-year yield hitting 5.135% (highest since July 2007) and the 2-year yield reaching 4.947% (highest since May 2024).
- •Key factors for the bond yield surge included strong economic activity data (S&P Global Services PMI at 58.7, Manufacturing PMI at 56.7), Federal Reserve Governor Michael Barr's warning of further rate hikes, and poor demand at a five-year treasury auction.
- •A rebound in oil prices following Iranian President Pezeshkian's UN speech and concerns over diesel export bans also contributed to pressure on bond yields.
Key Questions Answered
Benchmark indices on Wall Street experienced profit booking driven by a surge in bond yields and a rebound in oil prices from lower levels, causing the Dow Jones to fall 350 points and the Nasdaq to drop 1.1% on September 23, 2026.
The rise in bond yields was driven by strong economic activity data pointing to potential Fed rate hikes, Federal Reserve Governor Michael Barr's warning about rate adjustments, poor demand at a five-year note treasury auction, and a rebound in oil prices following Iranian President Pezeshkian's UN address.
The S&P Global Services PMI rose to 58.7 and the Manufacturing PMI reached 56.7, signaling the fastest business activity growth since 2015 and renewing fears that the Federal Reserve might hike interest rates again.
