Traders work on the floor of the New York Stock Exchange (NYSE) in New York on Sept. 16, 2026.
Timothy A. Clary | AFP | Getty Images
Stocks fell on Tuesday following another rise in Treasury yields to fresh multiyear highs.
The Dow Jones Industrial Average pulled back 131.59 points, or 0.26%, to close at 51,349.92. The S&P 500 edged down 0.16% to end at 7,670.84, while the Nasdaq Composite slipped 0.09% to 26,797.54. Though all three indexes ended the session off their lows, they also posted back-to-back losing sessions.
Bank stocks slid. JPMorgan Chase, Morgan Stanley and Bank of America declined. The State Street Financial Select Sector SPDR ETF (XLF) also closed lower.
The 30-year Treasury bond yield climbed to a high above 5.6% to reach a level not seen since June 2002. The benchmark 10-year Treasury note yield topped 5.29% at its session high.
The combination of higher oil and yields has put pressure on stocks of late. The Dow fell more than 300 points on Monday, while the S&P 500 and Nasdaq Composite shed 0.8% and 0.9%, respectively.
U.S. Treasury yields
“The markets are believing that inflation will come down [and] that it will come with demand destruction,” Jeff Klingelhofer, a managing director and portfolio manager at Aristotle Pacific Capital, told CNBC. “That’s why equities are down [and] that’s why rates are up…the markets are shifting to a belief that [Fed chairman Kevin] Warsh has that resolution.”
Tuesday’s moves put stocks on track for mixed performances on a monthly and quarterly basis.
The S&P 500 and Dow have lost 0.2% and 3.5%, respectively, in September. For the Dow, it would snap a five-month winning streak. The Nasdaq has advanced more than 1% month to date.
For the quarter, the S&P 500 has gained 2% along with the Nasdaq. The Dow has fallen almost 2% in the third quarter.
