Nasdaq Slips 234 Points to 27,365 as 10-Year Treasury Yield Hits 5.35%, Highest Since 2002; Dow Tumbles 473 Points

Mumbai, 7 October 2026: US stocks opened lower on Wednesday after the S&P 500 and Nasdaq Composite reached record highs a day earlier, as rising Treasury yields and higher oil prices renewed pressure on equities. At 9:40:06 AM EDT, the Nasdaq Composite stood at 27,365.81, down 234.08 points, or 0.85%, while the Dow Jones Industrial Average fell 473.77 points, or 0.92%, to 51,047.51. The S&P 500 declined 46.77 points, or 0.60%, to 7,772.16. The moves came ahead of the release of the Federal Reserve’s September meeting minutes, which could provide further details on the central bank’s approach to interest rates.

The opening decline followed a strong session on Tuesday, when the S&P 500 and Nasdaq Composite set fresh intraday and closing records. The reversal on Wednesday was accompanied by a sharp rise in government bond yields, with the 10-year Treasury yield reaching 5.350%, its highest level since April 2002, while the 30-year Treasury yield climbed to 5.725%, its highest level since May 2002. Oil prices also moved higher, with Brent crude trading around $102 a barrel and West Texas Intermediate crude moving above $90 a barrel.

Nasdaq Falls 0.85% As Record Highs Give Way To Early Losses

The Nasdaq Composite opened at 27,430.54, compared with its previous close of 27,599.89, before falling further during the early session. At 9:40:06 AM EDT, it was at 27,365.81, down 234.08 points, or 0.85%. The index’s early trading range was 27,350.72 to 27,458.28, while its 52-week range stood between 20,690.25 and 27,722.75. Trading volume was 1,047,062,000, compared with an average volume of 8,051,604,687.

The technology-heavy index was particularly affected by weakness across several chipmakers and other technology companies that had contributed to the previous day’s gains. Micron Technology fell 3.00%, Lam Research declined 3.65%, Applied Materials dropped 2.71%, Marvell Technology lost 3.06%, Western Digital fell 3.07%, and Arm Holdings declined 3.03%. Texas Instruments dropped 2.80%, KLA Corporation declined 2.43%, and Qualcomm fell 1.49%. Advanced Micro Devices slipped 1.83%, while Broadcom declined 0.99%.

Some technology and communications companies moved against the broader trend. Apple gained 0.48%, Microsoft declined 0.43%, Alphabet’s Class A shares fell 0.85%, and Class C shares dropped 0.71%. Meta Platforms declined 1.63%, Amazon fell 1.00%, and Tesla slipped 0.23%. Netflix gained 0.33%, while T-Mobile US rose 1.61%.

The moves left the Nasdaq lower after the index had closed at a record level on Tuesday. The early decline also highlighted the concentration of the broader market’s gains in a small number of large technology companies, with Nvidia, Apple and Microsoft together accounting for roughly a fifth of the S&P 500.

Dow Drops 0.92% As Caterpillar and Goldman Sachs Weaken

The Dow Jones Industrial Average opened at 51,406.44, compared with its previous close of 51,521.28, and stood at 51,047.51 at 9:40:32 AM EDT. The index was down 473.77 points, or 0.92%, with an early trading range of 51,056.16 to 51,406.44. Its 52-week range was 45,057.28 to 54,744.33, while trading volume was 35,154,685, against an average volume of 457,865,156.

Several industrial and financial constituents contributed to the decline. Caterpillar dropped 3.16%, while Goldman Sachs fell 2.97%. JPMorgan Chase declined 1.40%, American Express fell 1.24%, and Boeing lost 1.33%. Microsoft declined 0.43%, while International Business Machines fell 0.66% and Cisco Systems dropped 0.51%.

The decline was partly offset by gains in several defensive and energy-related companies. Walmart rose 0.58%, Coca-Cola gained 0.52%, Procter & Gamble advanced 0.37%, and Johnson & Johnson climbed 0.75%. Amgen rose 1.35%, while Chevron gained 0.70%. Visa added 0.37%, while McDonald’s increased 0.45%.

The Dow’s movement reflected the broader weakness across US equities as higher borrowing costs returned to focus. The index had also opened lower earlier in the session at around 0.63%, before the decline widened during early trading.

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S&P 500 Slips 0.60% as Treasury Yield Hits 5.35%

The S&P 500 opened at 7,792.98, compared with its previous close of 7,818.93, and stood at 7,772.16 at 9:40:57 AM EDT. The index was down 46.77 points, or 0.60%. Its early range was 7,770.09 to 7,792.98, while its 52-week range stood between 6,316.91 and 7,844.52. Volume was 182,675,656, compared with an average volume of 5,019,532,656.

The decline followed the index’s move above 7,800 for the first time on Tuesday, when easing bond yields helped support gains in equities. On Wednesday, that relationship reversed as the benchmark 10-year Treasury yield rose by nearly 8 basis points to reach 5.350%. The yield surpassed its previous high from Monday and reached its highest level since 3 April 2002, when it touched 5.379%.

The increase in Treasury yields was broad-based. The 30-year Treasury yield rose to 5.725%, also reaching its highest level since May 2002. The rise came ahead of a US Treasury auction of $39 billion of 10-year notes scheduled for Wednesday.

Within the S&P 500, chip stocks were among the weakest performers. Micron fell 3.02%, Lam Research dropped 3.65%, Applied Materials declined 2.85%, Western Digital lost 3.11%, and Marvell Technology fell 3.06%. Broadcom declined 0.99%, Advanced Micro Devices dropped 1.83%, and KLA Corporation fell 2.53%.

Financial shares also declined, with JPMorgan down 1.40%, Bank of America falling 1.68%, Morgan Stanley declining 2.70%, Goldman Sachs losing 2.84%, Wells Fargo dropping 1.33%, Citigroup falling 2.57%, BlackRock declining 1.70%, and Charles Schwab losing 2.10%.

Russell 2000 Falls 0.59% As Smaller Stocks Slide

The Russell 2000 was also lower, standing at 2,830.30, down 16.84 points, or 0.59%, from its previous close of 2,847.14. The index opened at 2,854.96 and traded between 2,825.98 and 2,864.83. Its 52-week range was 2,303.46 to 3,069.71.

The smaller-company index recorded widespread declines across technology, healthcare, financial services, energy, industrial and materials stocks. Among the notable declines, Applied Optoelectronics fell 6.55%, Axcelis Technologies dropped 6.04%, and IONQ declined 4.94%. Applied Digital fell 5.10%, while Riot Platforms dropped 5.34% and CleanSpark declined 5.53%.

Healthcare stocks also recorded sizeable moves. 10x Genomics fell 9.16%, while Twist Bioscience declined 5.59% and Hims & Hers Health fell 1.87%. Beam Therapeutics dropped 2.08%, while Privia Health declined 2.38%. In contrast, Glaukos gained 5.09%, while several other healthcare names recorded smaller increases.

Energy stocks were among the areas showing gains. PBF Energy rose 2.40%, SM Energy gained 1.21%, Valaris increased 1.13%, and several other energy companies also moved higher. The gains came as crude oil prices returned above key levels amid continuing concerns over supply disruptions in the Middle East.

Tech Stocks Lead Declines as AI Shares Lose Early Momentum

Technology and artificial intelligence-related companies were among the most visible decliners at the opening of Wednesday’s session. The weakness followed a strong advance in chipmakers on Tuesday, when semiconductor stocks helped push the Nasdaq and S&P 500 to records.

Nvidia declined 0.68% in the Nasdaq Composite heatmap and 0.62% within the S&P 500. The chipmaker had been approaching a $6 trillion market capitalisation after ending Tuesday with a market value of about $5.8 trillion. Its shares were nearly 30% higher this year, and the price required to reach a $6 trillion valuation was estimated at $248.48, less than 4% above Tuesday’s closing level.

Other semiconductor names recorded steeper early losses. Micron fell around 3%, Advanced Micro Devices dropped nearly 2%, Broadcom declined close to 1%, and Marvell Technology fell by more than 3%. The semiconductor exchange-traded fund tracking the broader sector was down around 2%, while a memory-focused exchange-traded fund fell by a similar amount.

SpaceX also declined after reports that the company was in talks to raise $40 billion to finance purchases of Nvidia chips. Its shares slipped 1.5% at the bell, while Nvidia fell around 1% in early trading. The reported funding discussions came as demand for the hardware supporting artificial intelligence systems remained a major focus of the technology sector.

The wider artificial intelligence theme continued to attract attention because of developments involving AI agents. The emergence of increasingly sophisticated digital assistants has led to renewed expectations for demand for the processors used to operate them. Analysts have estimated that the total CPU market could expand from $29 billion in 2025 to $300 billion in 2030, although Wednesday’s market action showed that the companies linked to the broader technology rally were not uniformly higher.

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Oil Climbs Above $100 As Middle East Supply Risks Persist

Oil prices moved higher alongside Treasury yields, adding another source of pressure to the US equity market. Brent crude rose above $100 a barrel, trading around $102.23, up $1.65, or 1.64%, at 9:33:27 AM EDT. West Texas Intermediate crude moved close to $90 a barrel after gaining nearly 1%.

The increase came amid continued attacks in the Strait of Hormuz and renewed concerns about oil supplies from the region. UK officials have reported at least nine attacks in the critical waterway during October. Although shipments through the Strait have increased in recent weeks, continued disruption risks have kept crude prices elevated.

A tropical storm approaching the US Gulf Coast also added a separate supply concern. The storm was expected to approach landfall as a hurricane by Friday, while Chevron said it was evacuating non-essential personnel from offshore platforms in the region.

The combination of higher oil prices and higher borrowing costs occurred as markets were already assessing the effects of the recent rise in interest rates. The increase in energy costs added another variable to the economic backdrop as policymakers continued to focus on inflation.

Fed Minutes Could Clarify Whether September Hike Was One-Off

The Federal Reserve’s September meeting minutes were scheduled for release at 2:00 PM EDT on Wednesday, making the document the day’s key policy event for markets. The Federal Reserve raised its benchmark interest rate at the September meeting, marking the first increase since 2023. Policymakers had also indicated that another increase could occur before the end of the year.

The minutes are expected to provide details of the discussion at the 15-16 September meeting, including how officials assessed inflation and economic conditions and how they viewed the possibility of further rate increases. The September decision came as inflation remained above the Federal Reserve’s 2% target.

Market pricing for another increase at the late-October meeting had changed during the week. Early Wednesday, traders were assigning roughly 22% odds to a rate increase at the next meeting, down from around 50% a week earlier. Another estimate put the probability at roughly 20%, reflecting the same broad shift in expectations.

A weaker-than-expected September jobs report released the previous week had reduced expectations for an immediate further rate increase. However, the Federal Reserve minutes remained important because they could show whether the September increase was viewed as a one-off adjustment or part of a broader tightening approach.

The minutes were due on the same day as the Treasury’s $39 billion 10-year note auction at 1:00 PM EDT, adding two closely watched events involving US government borrowing and monetary policy to the day’s calendar.

Dollar Rises 0.6% While Gold And Bitcoin Move Lower

The US dollar also strengthened as Treasury yields climbed. The dollar index, which measures the greenback against a basket of major currencies, rose 0.6% to 102.39 during early trading.

Gold moved in the opposite direction, with futures falling 1.6% to $4,120 an ounce. The decline came despite wider attention on the precious metal as a commodity that could be affected by concerns surrounding government debt, changes in bond yields, oil-price movements and continued central-bank purchases.

Bitcoin also moved lower, trading around $83,300 after reaching overnight highs near $85,700. The decline affected several cryptocurrency-linked equities, including Strategy, Coinbase Global, Robinhood Markets, MARA Holdings and Circle Internet Group.

The movements across currencies, gold and digital assets came as investors monitored higher bond yields, elevated oil prices and the Federal Reserve’s upcoming minutes. These developments were taking place alongside the start of the third-quarter corporate earnings period, which is expected to bring additional attention to company results in the coming days.

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Constellation Brands Falls 5% Despite Q2 Beat as Beer Depletions Decline

Constellation Brands reported fiscal second-quarter revenue of $2.63 billion, up 6% year-on-year and above analysts’ expectation of $2.54 billion. Adjusted earnings were $3.74 per share, also ahead of the expected $3.55-$3.56 per share range cited in the market updates. Despite the earnings and revenue beat, shares were around 5% lower in pre-market trading before moving higher during the early session.

The pressure followed a decline in beer depletions, a measure used to track shipments to retailers and provide an indication of underlying demand. Beer operating margins also decreased by 160 basis points year-on-year. Constellation Brands additionally announced the $75 million acquisition of SpikedAde, a canned vodka beverage business, with potential additional payments of up to $278 million based on sales.

The company reaffirmed its full-year adjusted earnings-per-share forecast of $11.20-$11.90. It continued to expect beer sales to range from a 1% decline to 1% growth, while wine sales and enterprise sales were each expected to remain within the same -1% to +1% range.

Early Stock Movers Show Sharp Gaps Across Sectors

Several individual companies recorded significant moves during early trading. Webull Corporation fell 17.65% to $5.99, down $1.29, while Hess Midstream declined 15.46% to $32.70, a fall of $5.98. 10x Genomics dropped 9.16% to $73.27, down $7.39, and X-Energy fell 8.09% to $14.20, down $1.25.

Futu Holdings declined 7.02% to $105.26, while Harmony Gold Mining fell 6.76% to $16.16. Astera Labs dropped 6.43% to $364.72, while NovaGold Resources declined 6.34% to $6.20. Redwire fell 6.08% to $9.97, while Aura Minerals declined 6.07% to $81.40.

Other notable declines included Centrus Energy, down 6.07% to $144.69, Oklo, down 6.06% to $36.24, Firefly Aerospace, down 6.26% to $21.40, and QXO, down 6.48% to $11.33. MARA Holdings fell 5.65% to $10.35, while NuScale Power declined 6.29% to $7.52.

Among the early gainers, Penguin Solutions rose 14.92% to $73.79, an increase of $9.58. Black Hills Corporation gained 6.86% to $75.59, while NorthWestern Energy Group rose 6.65% to $73.50. BKV Corporation advanced 6.60% to $23.51, and Glaukos increased 5.09% to $169.91.

Mattel gained 3.96% to $16.56, while Corteva rose 2.89% to $14.31. The moves showed a wide divergence between individual stocks even as all three major US indexes opened lower.

Energy Shares Gain as Crude Returns Above $100

Energy stocks were among the areas recording gains as crude prices moved higher. Within the S&P 500, Exxon Mobil rose 1.12%, Chevron gained 0.61%, ConocoPhillips increased 1.71%, Marathon Petroleum advanced 2.11%, and Valero Energy climbed 1.41%. Occidental Petroleum and other energy names were also closely watched as Brent crude returned above $100 a barrel.

The move in energy shares came as the market monitored the continuing US-Iran conflict, attacks around the Strait of Hormuz and the potential effect of weather conditions on Gulf Coast operations. Chevron Chief Executive Mike Wirth also warned against a potential US diesel export ban, saying it could worsen supply conditions and create uncertainty over the reliability of US supplies to allies and partners.

The developments added to the broader market’s focus on energy costs at a time when Treasury yields were also rising. Higher crude prices and elevated borrowing costs were therefore two of the main developments accompanying the early decline in the major indexes.

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Emerging Markets See $26.3 Billion Outflow In September

Higher US yields and a stronger dollar were also reflected in international capital flows. Foreign investors withdrew $26.3 billion from emerging-market stocks and bonds in September, according to data cited from the Institute of International Finance.

The September outflow was the first monthly withdrawal since June. Foreign investors withdrew $7 billion from emerging-market fixed income during the month, marking the first net outflow from that segment since March.

The developments came as a more restrictive US monetary policy stance contributed to higher Treasury yields and a stronger dollar. The figures provided another indication of how movements in US rates and the dollar were affecting financial markets beyond Wall Street.

The major US indexes opened lower on 7 October 2026, with the Nasdaq Composite down 0.85%, the Dow Jones Industrial Average down 0.92%, and the S&P 500 down 0.60%. Treasury yields reached multi-decade highs, Brent crude moved above $100, and the Federal Reserve’s September meeting minutes were scheduled for release at 2:00 PM EDT.