Stock Market Today (Sept. 24, 2026): Nasdaq slides as Treasury yields surge, inflation fears rise

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Happy Thursday. Stocks were falling Thursday as investors reacted to surging Treasury yields and ongoing geopolitical worries.

The bond market sell-off sent markets sharply lower on Wednesday.

The 10-year Treasury yield, which is tied to mortgage rates, jumped to 5.11%, reaching its highest level since 2007.

The yield on the 2-year note climbed to 4.897%, its highest level since 2023, while the 30-year Treasury yield rose more than 3 basis points to reach a post-2004 peak of 5.438%.

“There is an important nuance behind the rise in yields,” Daniela Hathorn, senior market analyst at Capital.com, said. “It would be easy to attribute the move to renewed inflation fears following the Middle East energy shock, but the evidence suggests that is only part of the story.”

Hathorn said market-based longer-term inflation expectations have remained relatively contained. Instead, she said, real yields have risen substantially, suggesting investors are demanding higher inflation-adjusted returns rather than simply pricing in an uncontrolled acceleration in consumer prices.

“The latest PMI reinforces that interpretation,” Hathorn said. “The economy is not merely avoiding recession; it appears to be accelerating. S&P Global reported the strongest business activity growth in more than five years, alongside increasing capacity constraints and faster input-cost growth.”

“That combination tells bond investors that the economy may be capable of sustaining higher real interest rates than previously assumed.”

Separately, Chinese President Xi Jinping arrived in Washington Wednesday, where he was met with a rare planeside greeting from President Donald Trump after their top officials agreed to extend a trade truce until January, the Associated Press reported.

This story was originally published by TheStreet on Sep 24, 2026, where it first appeared in the Stock Market Today section. Add TheStreet as a Preferred Source by clicking here.