Closing Bell: Stocks Retreat as Yields Hit 24-Year Highs

Stocks pulled back from all-time highs on Wednesday as long-dated Treasury yields resumed their climb to 24-year peaks, reviving inflation and debt fears ahead of the Federal Reserve's October policy meeting. 

The S&P 500 (SPX) was down 0.22%, the tech-heavy Nasdaq-100 (NDX) fell 0.21%, and the Dow Jones Industrial Average ($DJI) moved lower by 0.66%. The Russell 2000 (RUT) fell 1.31%. 

The PHLX Semiconductor Sector Index (SOX) dropped 1.15%. The U.S. benchmark price for crude oil (/CL) was down -0.19% to roughly $89 per barrel. See Explaining SPX & NDX 'Stealth Correction,' Crude Oil's 'Inflection Point'  

Three things to watch from today's market: 

SpaceX's $40 Billion AI Chip Bet 

SpaceX (SPCX) shares were down 2.5% Wednesday. It is seeking to raise $40 billion to purchase Nvidia (NVDA) chips, according to the Financial Times, a move that underscores the massive capital flowing into artificial intelligence infrastructure. The report weighed on chip stocks broadly. Separately, TD Cowen upgraded Marvell Technology (MRVL) to Buy from Hold and raised its price target to $350 from $245 following the company's Investor Day. 

Treasury Yields at 24-Year Highs 

The benchmark 10-year Treasury yield reached 5.364%, its highest level since April 2002, while the 30-year bond yield touched 5.732%, a 24-year peak. Yields pulled back from session highs, with the 10-year finishing up just one basis point near 5.28%. The surge in borrowing costs pressured rate-sensitive sectors, with housing and homebuilder stocks down 2.3% and 2.9%, respectively, and the 30-year fixed mortgage rate hitting a near three-year high. See A Bifurcated Market on the Edge of a Correction | Morning Trade Live 

FOMC Minutes Signal More Tightening 

Fed minutes released Wednesday afternoon showed most officials see another rate hike as likely by year-end. The minutes from the September meeting, which produced a 25-basis-point increase, revealed divisions over the rationale, with some participants citing energy price shocks and others pointing to demand-driven inflation. Officials noted the ongoing AI buildout was boosting business investment, a factor contributing to the economy's underlying momentum. The CME FedWatch tool now projects a 17% probability of an October rate hike. See The Fed's Balancing Act in Inflation & Jobs Meets Accelerating AI Demand 

For this week’s economic and earnings calendars, see: Week Ahead: FOMC Minutes Kick Off Final Quarter of 2026  

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