US stock indices eased from record highs as higher bond yields rebounded and hampered the earnings projections on debt-sensitive sectors. The S&P 500 and the Nasdaq 100 fell 0.5% and 0.7%, respectively, from their records, and the Dow dropped 1%. Iranian strikes on vessels crossing the Strait of Hormuz worsened soaring shipping premiums faced by tankers in the region and raised the outlook for energy inflation. Long-dated borrowing costs also remained supported by widening federal budget deficits. AI infrastructure stocks erased their gains from earlier this week amid the increasing impact of high yields and credit spreads on their orders, with Micron, AMD, Oracle, Lam Research, and Applied Materials dropping 2%. This was despite positive news for the sector, with SpaceX set to borrow $40 billion to buy Nvidia chips. Nvidia was 1% down and SpaceX fell 3%. Meanwhile, pharmaceuticals and consumer staple companies were higher.
By Alexander OsipovichStocks are retreating and Treasury yields are trading at fresh multidecade highs.The Dow industrials, Nasdaq composite and S&P 500 all opened lower Wednesday morning, a day after the artificial-intelligence rally powered two of those indexes to fresh records.Government bonds a…
01:42:08 PM UTC
SquawkNews
By Alexander Osipovich Stocks are retreating and Treasury yields are trading at fresh multidecade highs. The Dow industrials, Nasdaq composite and S&P 500 all opened lower Wednesday morning, a day after the artificial-intelligence rally powered two of those indexes to fresh records. Government bonds are selling off again, with yields on both the 10-year and 30-year Treasurys hitting their highest levels since 2002. The moves come ahead of the release of the Federal Reserve's minutes from its last meeting. Investors will be on the lookout for signs of how the central bank is thinking about inflation and the need for further interest-rate increases. Overseas, yields on French government bonds are rising again, but remain below the levels they hit last week when worries about France's fiscal health reignited memories of the eurozone debt crisis. Oil prices are up, with Brent crude futures trading above $101 a barrel. Attacks by Yemen's Houthi rebels on Saudi Arabia have kept tensions elevated in the Middle East. Write to Alexander Osipovich at alexo@wsj.com This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage). (END) Dow Jones Newswires October 07, 2026 09:40 ET (13:40 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.
US stock indices eased from record highs as higher bond yields rebounded and hampered the earnings projections on debt-sensitive sectors. 7%, respectively, from their records, and the Dow dropped 1%. Iranian strikes on vessels crossing the Strait of Hormuz worsened soaring shipping premiums faced by tankers in the region and raised the outlook for energy inflation. Long-dated borrowing costs also remained supported by widening federal budget deficits.
AI infrastructure stocks erased their gains from earlier this week amid the increasing impact of high yields and credit spreads on their orders, with Micron, AMD, Oracle, Lam Research, and Applied Materials dropping 2%. This was despite positive news for the sector, with SpaceX set to borrow $40 billion to buy Nvidia chips. Nvidia was 1% down and SpaceX fell 3%. Meanwhile, pharmaceuticals and consumer staple companies were higher.