Dow tumbles ~500 as 30-year Treasury yield hits 24-year high and Brent crude tops $100 ahead of Fed minutes
What happened
Wednesday's session is a broad risk-off repricing after Tuesday's record highs: the Dow tumbled roughly 500 points (futures down 311, ~0.6%) while the 30-year Treasury yield rose to its highest since 2002, with the 10-year at 5.31%. Brent crude pushed back above the $100-a-barrel mark (up 0.7% to $101.25) as Middle East supply concerns persist. Chip stocks led the early downside — Seagate and Western Digital sank, while Astera Labs and Teradyne each fell more than 4%. Traders are braced for two afternoon catalysts: the release of minutes from the Fed's September 15-16 meeting at 2 p.m. ET (the meeting that delivered the first rate hike since 2023, with one more hike penciled in before year-end) and a 10-year Treasury auction at 1 p.m. ET. CME FedWatch pricing now shows only a 22% chance of an October hike — down from 50% a week ago — while a December hike remains largely priced in.
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Start your free 14-day trialWho’s affected
- Broad market (S&P 500, Dow, Nasdaq) — rising long yields pressure equity valuations across the board; the Dow was down ~500, S&P 500 futures -0.3% in the morning
- Chip stocks — Seagate and Western Digital sinking; Micron -2.2%, Marvell -1.2%, Astera Labs and Teradyne each down over 4% on rates sensitivity and profit-taking after Tuesday's AI rally
- Energy (Chevron) — one of the few gainers as Brent tops $100/bbl on Middle East supply concerns; Chevron up 0.4% in early trading
- Rate-sensitive sectors (utilities, real estate, small caps) — typically hardest hit by a 30-year yield at 2002 levels
- Airlines, consumer discretionary — higher energy costs squeeze margins and consumer wallets