The Nasdaq fell 1% a day after hitting a record high, due to rising oil prices and a new high in Treasury yields

The Nasdaq Composite “tech” index fell 1.1% at the close of trading on Wednesday, September 23—one day after setting a new all-time high. This was the index’s sharpest decline in more than a month, MarketWatch noted. The Nasdaq 100, which includes the 100 largest companies by market capitalization, fell 0.85%.

Other indices also closed in the red: the S&P 500 lost 0.75%, and the Dow Jones Industrial Average fell 0.68%. The Russell 2000 index of small- and mid-cap companies declined by 1.77%.

Stocks fell on Wednesday amid a renewed rise in U.S. Treasury yields. Yields spiked following the release of strong PMI business activity indices: for the manufacturing and services sectors, they reached 53- and 59-month highs, respectively, CNBC reported. This heightened concerns about further interest rate hikes by the U.S. Federal Reserve. The yield on 10-year Treasuries rose to 5.135%—the highest level since July 2007. During the day, it rose at the fastest pace since April 7, 2025. The yield on 2-year U.S. Treasury notes rose to its highest level since May 2024.

The spike in oil prices on Wednesday was the sharpest in two weeks, according to MarketWatch. Brent futures rose 3.9% to $103.08. This brought an end to a five-day losing streak for oil. The rise in prices boosted oil company stocks: The State Street Energy Select Sector SPDR ETF gained 1% after closing the previous day at a six-week low, MarketWatch added.

Gold futures fell 1.3% to $4,281.3, their lowest level since August 6, MarketWatch reported, citing data from Dow Jones Market Data. Over the past three days, gold futures have lost 2.4% of their value. Gold prices are quoted in dollars, and the rise in the value of the U.S. currency makes the metal more expensive for buyers outside the United States. In addition, gold does not pay interest, and under these conditions, investors may be drawn to the higher yields offered by bonds, MarketWatch explained.

An economy that is strong enough to withstand an interest rate hike is different from one that is so strong that it exacerbates inflationary pressures, said Will Compernolle, a macro strategist at FHN Financial, as quoted by Bloomberg. ““The former gives the Fed leeway to focus on inflation without worrying too much about a deterioration in the labor market. The latter requires a more aggressive and urgent approach to tightening [monetary policy],” the expert noted.

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