As of 11:45 AM ET, the S&P 500 (SNPINDEX:^GSPC) is down 0.55% to 7,722, the Nasdaq Composite (NASDAQINDEX:^IXIC) is down 0.91% to 26,993, and the Dow Jones Industrial Average (DJINDICES:^DJI) has slipped 0.54% to 51,582 as a spike in bond yields halts a recent tech-led rally.
Gold is trading down 1.88% to $4,283.13, and the 10-Year Treasury yield is up 11 basis points to 5.08% -- a 19-year high. All sectors apart from energy stocks are down, with basic materials and consumer cyclicals falling the most.
Today's biggest moves
KB Home shares slipped slightly despite an earnings beat yesterday after it warned of increasingly difficult housing market conditions. The average U.S. 30-year fixed-rate mortgage just reached 7.12%, its highest point in over two years. Cybersecurity stocks rallied, including CrowdStrike and Palo Alto Networks, as investors focused on the role the firms might play in artificial intelligence (AI) safety.
What this means for investors
Rising Treasury yields, oil prices, and inflation fears all weighed on U.S. equities this morning, challenging tech's recent momentum. September U.S. business activity surged for the fourth month running, growing at its fastest rate in five years. Today's data fueled worries about inflation as traders significantly increased their probability of a second rate hike when the Federal Reserve meets in October.
Geopolitical events continue to dominate, with the Strait of Hormuz and the conflict in the Middle East under focus at the United Nations General Assembly. Investors will also be watching Chinese leader Xi Jinping's U.S. visit this week, as both AI and trade will be on the agenda.
Emma Newbery has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool recommends KB Home and Palo Alto Networks and recommends the following options: short October 2026 $60 calls on KB Home. The Motley Fool has a disclosure policy.