U.S. Stocks Slide as 10-Year Treasury Yield Climbs to 5.106%
A stronger-than-expected September PMI lifted rate concerns, while Bitcoin and Ether also retreated as liquidity conditions tightened.
U.S. stocks and cryptocurrencies fell Wednesday as stronger economic data pushed the 10-year Treasury yield to 5.106%, renewing pressure on high-growth assets and expectations for tighter monetary policy.
The S&P 500 dropped 0.75% to 7,706.03, while the Nasdaq Composite fell 1.13% to 26,936.04, ending a two-session run of record closes. The Dow Jones Industrial Average declined 0.68% to 51,511.59.
The September U.S. composite purchasing managers’ index rose to 58.4 from 56.0 in August, its strongest reading since July 2021. New orders accelerated and input costs approached a four-year high, lifting market pricing for another Federal Reserve rate increase in October to nearly 70% during the session.
Treasury yields moved sharply higher. The two-year yield climbed 11 basis points to 4.891%, while the 10-year yield posted its largest daily increase since April 2025. The move weighed on technology shares, with Alphabet down 3.8%, Amazon off 2.2% and Nvidia lower by about 1.5%.
Travel stocks also weakened, with Expedia falling more than 7% and Airbnb declining about 6%. Bitcoin briefly slipped below $84,000 before returning near that level, while Ether fell below $2,700. U.S. markets next turn to weekly jobless claims and August new-home sales.
