Dow opens 400 pts lower as oil and Treasury yields rise ahead of Fed minutes

• The 10-year Treasury yield rose to 5.35% and the 30-year yield hit 5.73%, both at levels not seen since 2002, as markets await Fed minutes that may clarify the future path of interest rates
• Brent crude traded above $100 per barrel and US crude approached $90, driven by Middle Eastern supply concerns and adding to inflation pressures
• Chip stocks led declines with Micron down 2.65%, as investors prepare for third-quarter earnings season where S&P 500 earnings are expected to rise 30.6% overall

Market Summary

Market Performance:

U.S. equities opened sharply lower on Wednesday, October 7, 2026, with the Dow Jones falling 422 points, the S&P 500 declining 0.44%, and the Nasdaq Composite dropping 0.62%. This followed record closing highs for the S&P 500 and Nasdaq the previous session.

Treasury Yields Surge:

The 10-year Treasury yield climbed over six basis points to 5.35%, its highest level since April 2002. The 30-year yield rose more than eight basis points to 5.73%, marking its highest point since May 2002. The Treasury is scheduled to auction $39 billion in 10-year notes on Wednesday.

Oil Prices Rally:

Brent crude pushed back above $100 per barrel (trading at $101.73, up 1%), while U.S. crude approached $90 per barrel. The rally stems from ongoing Middle Eastern supply concerns related to the Iran conflict, reigniting inflation fears.

Fed Minutes in Focus:

Investors awaited the release of September Fed meeting minutes for insights into the central bank's rate trajectory. The Fed raised rates in September for the first time since 2023. Markets expect rates to remain unchanged in October, with a possible December increase.

Sector Performance:

Semiconductor and technology stocks led declines, with Micron Technology down 2.65%, alongside drops in AMD, Broadcom, and Marvell Technology. Constellation Brands gained 2.14% despite lowering its annual operating margin forecast.

Earnings Outlook:

Third-quarter earnings season begins next week, with analysts projecting S&P 500 earnings growth of 30.6%. Energy sector earnings are expected to surge 114.7%, while technology earnings are forecast to rise 66.5%.

Market Implications:

The combination of rising yields and oil prices creates headwinds for equities, particularly growth stocks sensitive to higher discount rates and inflation concerns.