Stock Market Midday, Oct. 7: Rising Treasury Yields Pressure Stocks, Caterpillar tumbles over 6%

As of 11:36 AM ET, the S&P 500 (^GSPC -0.30%) is down 0.51% to 7,779, the Nasdaq Composite (^IXIC -0.47%) has slipped 0.55% to 27,449, and the Dow Jones Industrial Average (^DJI -0.66%) is trading 0.98% lower to 51,018 as the indices pull back from records set on Tuesday.

Gold prices have fallen 1.53% to $4,100.75, and the 10-Year Treasury yield is up 4 basis points to 5.31%, close to its highest level since 2002. Many sectors fell this morning, with industrials and basic materials dropping the most, while healthcare and consumer defensive stocks gained.

Today’s biggest moves

Caterpillar fell over 6%, weighing on the Dow after an analyst downgrade and investor jitters over artificial intelligence (AI) caused the industrial leader to pull back. Deere slid on news of a federal inquiry into agricultural equipment business practices. Webull tumbled 20% on reports that a congressional committee had raised concerns about its connections to China. Conversely, ZIM Integrated Shipping Services is climbing after raising its 2026 full-year guidance.

What this means for investors

The recent stock rally stalled this morning as elevated Treasury yields came back into focus. Concerns about another uptick in attacks on crude supply chains, as well as potential hurricane concerns, also pushed oil prices upward. This afternoon, the Federal Reserve will release the minutes from its September meeting, and market participants will look for clues about policy direction, particularly on further rate hikes.

It can be hard to turn the volume down on these headline-driven fluctuations, particularly when valuations of key stocks and U.S. indexes are close to record highs, and there’s a lot of uncertainty in the bond market. A long-term focus on quality stocks, an awareness of your risk tolerance, and a diversified portfolio can all help investors weather market turbulence.