Stocks fall after Treasury yields rise

Stocks fell on Tuesday following another rise in Treasury yields to fresh multiyear highs.

Dow drops 131 points

The Dow Jones Industrial Average pulled back 131.59 points, or 0.26%, to close at 51,349.92.

S&P 500 and Nasdaq edge down

The S&P 500 edged down 0.16% to end at 7,670.84, while the Nasdaq Composite slipped 0.09% to 26,797.54.

Back-to-back losing sessions

Though all three indexes ended the session off their lows, they also posted back-to-back losing sessions.

Bank stocks slide

Bank stocks slid. JPMorgan Chase, Morgan Stanley and Bank of America declined. The State Street Financial Select Sector SPDR ETF (XLF) also closed lower.

30-year Treasury yield hits 5.6%

The 30-year Treasury bond yield climbed to a high above 5.6% to reach a level not seen since June 2002.

10-year Treasury yield tops 5.29%

The benchmark 10-year Treasury note yield topped 5.29% at its session high.

Higher oil and yields pressure stocks

The combination of higher oil and yields has put pressure on stocks of late. The Dow fell more than 300 points on Monday, while the S&P 500 and Nasdaq Composite shed 0.8% and 0.9%, respectively.

Market shifts to belief in rate cuts

Jeff Klingelhofer, a managing director and portfolio manager at Aristotle Pacific Capital, told CNBC: 'The markets are believing that inflation will come down [and] that it will come with demand destruction.'

“The markets are believing that inflation will come down [and] that it will come with demand destruction”

Market shifts to belief in Fed resolution

Klingelhofer added: 'That's why equities are down [and] that's why rates are up...the markets are shifting to a belief that [Fed chairman Kevin] Warsh has that resolution.'

“That's why equities are down [and] that's why rates are up...the markets are shifting to a belief that [Fed chairman Kevin] Warsh has that resolution”

S&P 500 and Dow lose ground in September

The S&P 500 and Dow have lost 0.2% and 3.5%, respectively, in September. For the Dow, it would snap a five-month winning streak.

Nasdaq advances more than 1% month to date

The Nasdaq has advanced more than 1% month to date.

S&P 500 gains 2% quarterly

For the quarter, the S&P 500 has gained 2% along with the Nasdaq.

Dow falls almost 2% quarterly

The Dow has fallen almost 2% in the third quarter.

Disney cuts 300 employees

Disney is laying off around 300 employees in its latest round of job cuts since CEO Josh D'Amaro took the helm earlier this year.

Financials hit hardest in September

Financial stocks are the hardest hit sector in the S&P 500 in September as bond yields back up, raising the cost of capital and threatening to derail demand for loans.

S&P 500 financials down 6.3%

The S&P 500 financials index is off 6.3% in September, on pace for its first monthly decline in the last four and its worst monthly performance since March 2023.

Blackstone and BlackRock slide

Blackstone slumped 21% in September and BlackRock fell 8%. Morgan Stanley is on pace for its sixth straight decline Tuesday, the longest slide since early 2024.

State Street Bank ETF down 6.1%

The State Street SPDR S&P Bank ETF is down about 6.1% in September.

Financials near 200-day moving average

Financials that have recently fallen below their 200-day moving average include Bank of America, Goldman Sachs, Morgan Stanley, PNC Bank and Chubb.