Stock Market Today: Stocks Sink as Treasury Yields Hit New Highs
Yields on the 2-year and 10-year government bonds hit their highest levels in nearly two decades, resulting in outsized losses for rate-sensitive tech stocks.


Stocks spiraled Wednesday as the latest batch of corporate earnings reports and hawkish Fed speak spooked investors.
Rising Treasury yields did little to lift sentiment ahead of tonight's highly anticipated quarterly results from two mega-cap companies and tomorrow's speech from Fed Chair Jerome Powell.
Third-quarter earnings season is really getting started, with several stocks making notable post-earnings moves Wednesday. Morgan Stanley (MS), for one, fell 6.8% after the big bank reported weaker-than-expected net interest income and investment banking revenue for its third quarter. Still, the company beat on both its top and bottom lines.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Elsewhere, United Airlines (UAL) slumped 9.7% after the air carrier reported earnings. UAL disclosed third-quarter earnings ($3.65 per share) and revenue ($14.5 billion) that were higher than analysts were expecting. However, the company warned fourth-quarter figures could come in lower than anticipated if flights to Tel Aviv remain suspended due to the war between Israel and Hamas.
Still, Argus Research analyst John Staszak maintained a Buy rating on the airline stock, saying he expects "demand for air travel to continue to recover from the pandemic, with strong growth in both business and international travel." The analyst is also looking "for higher revenue to outweigh inflationary headwinds."
Staszak isn't alone in his bullish outlook toward UAL. Of the 20 analysts following the industrial stock tracked by S&P Global Market Intelligence, nine say it's a Strong Buy, six call it Buy, three have it at Hold, and two rate it Sell or Strong Sell. This works out to a consensus Buy recommendation. What's more, analysts expect United Airlines to average earnings per share growth of 63.3% over the next three to five years.
Yields spike after Fed speeches
Also in focus Wednesday were a round of speeches from Federal Reserve officials, including one from New York Fed President John Williams. Speaking at a moderated event at Queens College in New York earlier, Williams said interest rates will need to stay higher "for some time" in order to bring inflation down to the Fed's 2% target.
Shortly after Williams took the podium, the main indexes sold off sharply and continued falling into the close. The rate-sensitive Nasdaq Composite ended the session down 1.6% at 13,314, as yields on the 2-year and 10-year Treasury bonds hit their highest levels since 2006 and 2007, respectively. The S&P 500 gave back 1.3% to 4,314, and the Dow Jones Industrial Average was off 1.0% at 33,665.
Mega-cap earnings, Powell on deck
Looking ahead, there's plenty of activity to hold investors' attention Thursday. For one, market participants will have the chance to react to the onslaught of earnings reports due overnight. After Wednesday's close, Netflix (NFLX) reported a third-quarter earnings beat, sending its shares 10% higher in after-hours trading. Tesla (TSLA) is also reporting Q3 earnings this evening.
Additionally, the most-anticipated central bank event of the week comes tomorrow, with Fed Chair Jerome Powell set to speak around lunchtime at the Economic Club of New York. UBS Global Research chief U.S. economist Jonathan Pingle doesn't expect Powell "to assuage market participants' concerns over rising yields." Rather, the Fed chair will likely "walk a fine line between signaling a willingness to wait and not raise rates at the November meeting," while also indicating the central bank's willingness to hike rates if jobs and inflation data doesn't cool, Pingle says.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
I was laid off in my 40s and took a lower-paying job. I'm can't contribute to my retirement savings until my income rises, and I only have $200,000. Help!
The pain of underemployment is real. We ask financial experts for advice.
-
I'm a Retirement Psychologist: Here's Why Doing What You 'Ought' in Retirement Beats Doing Whatever You Want
True retirement freedom isn't about simply doing whatever you want, but about finding purpose and direction through commitments that align with your deepest values and allow you to contribute meaningfully.
-
Stocks End Strong Month on a Down Note: Stock Market Today
There was likely a bit of profit-taking ahead of a historically weak September.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have Today
UNH stock was a massive market beater for ages – until it wasn't.
-
S&P 500 Tops 6,500 Even as Nvidia Slips: Stock Market Today
The world's most valuable company closed lower after earnings, but the S&P 500 managed to notch a new record high.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market Today
The AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
President Trump Makes Markets Move Again: Stock Market Today
The White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
-
Stocks Struggle to Start Nvidia Week: Stock Market Today
Another important week for the stock market starts on a risk-off note.
-
Dow Rips 846 Points to New All-Time High: Stock Market Today
Fed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
S&P 500 Extends Losing Streak Ahead of Powell Speech: Stock Market Today
Stocks continued to struggle ahead of Fed Chair Powell's Friday morning speech at Jackson Hole.