Treasury Yields Hit 19-Year High as Stocks Slide

U.S. stocks fell on September 23 as Treasury yields surged to their highest levels in nearly two decades. The Russell 2000 led declines, down 1.60%, followed by the Nasdaq (-1.11%), the S&P 500 (-0.73%) and the Dow Jones Industrial Average (-0.63%). Energy was the only sector to finish higher, up 0.89%, as oil prices slipped.

The 5-year Treasury yield breached 5% intraday for the first time since 2007, reaching 5.036%, while the 10-year yield climbed to 5.106%. Stronger-than-expected PMI data showing business activity at its highest level in more than five years reignited concerns that the Federal Reserve will keep raising rates, with more than 72% of U.S. stocks finishing the session lower.

President Trump's comments describing talks with Iranian representatives as "very productive" briefly lifted sentiment and pulled West Texas Intermediate crude down 0.97% to $89.64, but the relief faded as rate concerns continued to dominate trading.