Stock Market Today: Dow, S&P 500 and Nasdaq Fall as 10-Year Yield Tops 5%

TLDR

• The Dow, S&P 500 and Nasdaq fell Wednesday as Treasury yields jumped.
• The 10-year Treasury yield rose above 5%, reaching its highest level since 2007.
• Tech stocks led the decline after the Nasdaq posted back-to-back record highs.
• Investors are watching President Trump’s meeting with Chinese President Xi Jinping on Thursday.
• Oil climbed again as Iran tensions and inflation concerns remained in focus.

US stocks moved lower Wednesday as a sharp rise in Treasury yields pressured technology shares and investors looked ahead to President Donald Trump’s meeting with Chinese President Xi Jinping.

The Dow Jones Industrial Average fell about 0.3%, while the S&P 500 dropped roughly 0.4%. The Nasdaq Composite was down around 0.8% after hitting consecutive record highs earlier this week.

10-Year Treasury Yield Tops 5%

The biggest pressure came from the bond market. The 10-year Treasury yield climbed above 5.05%, its highest level since 2007, after briefly moving back above the key 5% mark.

Higher yields can weigh heavily on growth and technology stocks because they reduce the present value of future earnings. The move came as investors continued to assess inflation risks tied to energy prices and a still-resilient US economy.

S&P Global’s flash US composite PMI showed business activity expanding faster than expected, while the report also pointed to higher input costs linked to energy. That reinforced concerns that inflation could remain difficult to control.

Oil added to those worries. Brent crude moved above $101 a barrel, while West Texas Intermediate approached $92 after recent swings tied to the war in Iran and hopes for renewed diplomacy.

Trump-Xi Meeting Moves Into Focus

Markets are also preparing for Thursday’s meeting between Trump and Xi in Washington. Reuters has reported that trade, rare earth supplies, artificial intelligence, Taiwan and Iran are among the issues likely to feature in talks.

🚨LATEST:🇨🇳President Xi Jinping just left Beijing to meet President Trump in Washington, his first state visit to the US capital since 2015.

AI is on the agenda, but expectations for a major deal are low.

So far, the US has proposed a way for both countries to alert each other… pic.twitter.com/NLZGeK8c9A

— Coin Bureau (@coinbureau) September 23, 2026

Xi is visiting the US from September 23 to September 25, his first US state visit in years. Investors are not broadly expecting a sweeping agreement, but any comments on tariffs, chip restrictions or rare earth exports could move technology and semiconductor shares.

AI will be especially closely watched after competition between the US and China became a central part of their economic relationship. Reuters reported that investors remain exposed to both countries’ AI ecosystems despite rising political pressure and technology restrictions.

Iran also remains part of the market picture. Trump said US-Iran talks were continuing and that he believed a settlement could eventually be reached, although geopolitical risks remain elevated.

For investors, the near-term market direction may depend less on Wednesday’s stock losses than on whether yields stay above 5%, oil remains elevated and Thursday’s Trump-Xi talks produce any unexpected policy changes.