Higher yields interrupt the record rally
U.S. stocks fell on October 7, with the Dow losing more than the S&P 500, which had reached a record the previous day. Earnings optimism alone was not enough to sustain buying at elevated prices. The morning rise in borrowing costs encouraged profit-taking.
In its 9:08 a.m. Eastern update, Charles Schwab reported that the 10-year Treasury yield had reached its highest level since 2002, oil was rising and AI-related stocks were selling off before the open. Higher yields make expensive growth expectations harder to justify, providing the clearest explanation for the Nasdaq 100’s early weakness.
A recovery that stopped short of the previous close
The site’s charts show selling after the opening bell, followed by a recovery during the morning, in Eastern time. The Nasdaq 100 rebounded by roughly 0.5% or more from its low but remained below the previous close through the end of the session. The Dow also recovered without fully reversing its early decline.
AP News reported that the 10-year yield reached 5.36% in the morning before easing to 5.28% after a $39 billion auction. That stabilization likely supported stocks later in the day. USD/JPY also recovered after a sharp dip, although its 24-hour chart does not establish an immediate response to a specific release. Equities avoided a deeper slide, but high yields weakened the momentum behind the record rally.
Closing levels come from AP News and Nasdaq.
Major Index Closes
- S&P 5007,801.77 -0.22%
- NASDAQ 10031,160.08 -0.21%
- Dow Jones 3051,179.87 -0.66%
