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Stocks fell on Tuesday following another rise in Treasury yields to fresh multiyear highs.
The Dow Jones Industrial Average pulled back 131.59 points, or 0.26%, to close at 51,349.92. 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. Though all three indexes ended the session off their lows, they also posted back-to-back losing sessions.
Bank stocks slid. JPMorgan Chase, Morgan Stanley and Bank of America declined. The State Street Financial Select Sector SPDR ETF (XLF) also closed lower.
The 30-year Treasury bond yield climbed to a high above 5.6% to reach a level not seen since June 2002. The benchmark 10-year Treasury note yield topped 5.29% at its session high.
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.
"The markets are believing that inflation will come down [and] that it will come with demand destruction," Jeff Klingelhofer, a managing director and portfolio manager at Aristotle Pacific Capital, told CNBC. "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."
Tuesday's moves put stocks on track for mixed performances on a monthly and quarterly basis.
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. The Nasdaq has advanced more than 1% month to date.
For the quarter, the S&P 500 has gained 2% along with the Nasdaq. The Dow has fallen almost 2% in the third quarter.
Stocks ended the trading session lower on Tuesday, pushing them further into the red for the week.
The Dow Jones Industrial Average shed 0.26%, or about 131 points, to finish at 51,349.92. The Nasdaq Composite edged down 0.09%, closing at 26,797.54. The S&P 500 pulled back 0.17% to end the session at 7,670.84.
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, according to a person familiar with the matter.
Shares of the media and entertainment park company were little changed as of writing time.
The majority of the cuts were to human resources and technology roles, said the person, who spoke on the condition of anonymity because they were not authorized to speak publicly.
In April, Disney planned to eliminate as many as 1,000 roles, as D'Amaro consolidated its enterprise marketing division, CNBC reported at the time. Further cuts were made in July as the company reduced its workforce by several hundred people across corporate functions, including at Pixar, ESPN, Disney Entertainment Television and Disney's studios, according to various media reports. The majority of those layoffs occurred within Pixar and National Geographic.
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.
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. Momentum is flagging, with financials nearing their 200-day moving average, a level they last fell below in June.
Many individual financial stocks are harder hit, with Blackstone slumping 21% in September and BlackRock falling 8%. Morgan Stanley is on pace for its sixth straight decline Tuesday, the longest slide since early 2024.
The State Street SPDR S&P Bank ETF is down about 6.1% in September. Financials that have recently fallen below their 200-day moving average include Bank of America, Goldman Sachs, Morgan Stanley, PNC Bank and Chubb.
New York Fed President John Williams said Tuesday he thinks another interest rate hike could be necessary this year, though he thinks the central bank can be patient.
While the voted to approve the quarter percentage point hike at the meeting earlier this month, Williams encouraged policymakers to look at trends in the data before deciding.
"With the policy action we took at our September meeting, there is no need for urgency, and we have time to gather more information," he said in remarks delivered in Buffalo. "The accumulation of more data should provide greater clarity on the underlying trends in the economy and the associated risks to achieving our goals—and thereby the appropriate setting of monetary policy."
Still, he noted that "one further upward adjustment of the federal funds target range may be appropriate late this year to support a timelier return of inflation to target."
Federal Reserve Governor Michael Barr said Wednesday he expects that additional interest rate hikes will be needed to bring down inflation.
"In my base case, further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion," he said. "We want to support sustainable, durable growth in support of maximum employment, and price stability is crucial to that."
Barr added that he sees risks to inflation as higher than those to the labor market, so "we need to recalibrate policy to get us in a better position that more evenly balances risks to both components of our dual mandate."
Morgan Stanley analyst Adam Wood reiterated his stance that Shopify stands to be a beneficiary as agentic shopping gains momentum.
"SHOP monetizes the transaction rather than the impression, leaving it agnostic to where demand originates & more valuable as consumer discovery channels fragment," Wood wrote in a note to clients Tuesday.
Wood doesn't see the trend moving estimates yet, but sees the possiblity for Shopify's core business to accelerate as margins expand.
He rates the stock an overweight with a $192 price target, which is slightly more bullish than the average target price on Wall Street. Shopify has underperformed this year, down more than 10% in 2026 to around $144.
The 30-year Treasury bond yield climbed to a high of 5.613%, its highest level since June 2002. The benchmark 10-year Treasury note yield traded 4 basis points higher at 5.281%.
Silver hit a new low of $60.63 per troy ounce, its lowest since August 5, when it traded $59.62. The iShares Silver ETF (SLV) has been down almost 10% in the last five days.
Gold and silver prices fell sharply on Monday as higher bond yields weighed on metals, with silver posting the larger declines.
While the two metals generally move in the same direction, there are some key differences in how investors view them. Silver, in comparison to gold, is cheaper and typically more volatile, while the yellow metal serves as a powerful portfolio diversifier.
Silver is also tied more closely to the global economy. Its demand is from heavy industry and high technology, including smartphones, tablets, automobile electrical systems, solar-panel cells and many other products and applications, making silver more sensitive than gold to shifts in manufacturing and economic growth.
Shares of Fair Isaac, the data analytics company, plunged more than 26% after Federal Housing Finance Agency director Bill Pulte introduced changes to mortgage pricing.
In a post on X, Pulte said that Fannie Mae and Freddie Mac would move to a singular pricing grid to determine mortgage costs, and that grid would also include data from VantageScore. Fair Isaac's FICO credit score operates in direct competition with VantageScore, which is a joint venture by credit bureaus Equifax, Experian and TransUnion.
Shares of Fair Isaac are now off more than 63% in 2026.
The Conference board consumer confidence index fell 6.7 points to 81.9 in September, while economists polled by Dow Jones expected an increase to 89 from 88.6 in August.
"Consumer appraisals of current business conditions became negative for the first time since September 2024. Perceptions of the current labor market also worsened, though remained within positive territory. Over the next six months, consumers expected both business conditions and the labor market to weaken. Consumers still anticipated their household incomes to rise, but less so compared to previous months," said Dana Peterson, chief economist at The Conference Board.
Shares of Chinese electric vehicle company XPeng fell 4.2% Tuesday, reaching a 52-week low of $9.51, after JPMorgan downgraded the stock to neutral from overweight.
The firm is "cautious on the China auto sector's performance" and expects weakness in the second half of this year and continued "structural challenges" into 2027 including weak demand and higher input costs.
Those headwinds, analysts believe, will start to be reflected in XPeng's stock performance in the final quarter of 2026.
Despite its advanced design of AI-powered cars, JPMorgan argued that investors may not value "AI initiatives that don't have an immediate earnings contribution."
The Nasdaq advanced 0.4%, while the S&P 500 gained 0.1%. The Dow Jones Industrial Average lagged, falling 32 points, or 0.1%.
Oil prices pulled back on Tuesday on signs of better oil flows from the region.
West Texas Intermediate crude oil is trading 2.2% lower at $90.71 per barrel.
Gasoil, a European diesel, also hit a low of $1,365.25 per metric tonne, the lowest level since Sep. 4.
The pullback in oil comes as U.S. and Iranian officials have reportedly held separate indirect talks with mediators on Monday, signaling efforts to end the seven-month long conflict.
Meta is now pushing its new artificial intelligence service into the business world following the initial launch of its Muse AI agent.
The firm unveiled on Tuesday Muse for Small Business that connects its agent to popular software from companies like Asana, Zoom, Intuit, Box, Canva and Salesforce's Slack. The agent can also link to Meta ad accounts and professional Instagram and Facebook profiles.
Shares of Meta ticked up more than 1% in pre-market trading on Tuesday.
The company didn't offer details on pricing but referred at the bottom of its blog post to the existing Muse app, which is free with usage limits and available on a subscription basis beyond that.
President Donald Trump is a creditor to hundreds of cities, hospitals, schools, utilities and other public institutions across the country — many of which are directly affected by decisions made by his own administration.
Trump ended 2025 with 807 municipal bond positions worth $240.7 million to $797.6 million, according to a CNBC analysis of his financial disclosures filed since he returned to the White House. He has since disclosed at least 243 purchases in 2026 worth between $68.2 million and $233.8 million. Among those are 48 new purchases Trump disclosed Sept. 22 when his financial report for July became public. Unlike his stock holdings, which have been actively traded during this presidency, Trump reports purchasing bonds but not selling them.
Oura said Tuesday it is delaying plans for its public listing on the Nasdaq due to uncertainty in the IPO market.
"Our mission is to empower people to live healthier, longer, and an IPO is just one step in our journey," said CEO Tom Hale on Tuesday. "We aim to deliver an extraordinary IPO for our employees and investors and we have the luxury of choosing our moment. In the meantime, we will execute against the opportunities ahead."
The company was expected to hold its IPO this week.
The European Commission's Economic Sentiment Indicator declined slightly in September, in both the European Union and the euro area. Officials said it was driven by lower consumer confidence, with the index posting a sharp decline in France.
U.S. Treasury yields eased after marching to fresh highs during the previous session.
The 10-year U.S. Treasury note yield — the key benchmark for mortgage borrowing, auto loans and credit card debt — was last seen flat at 5.246%.
The 30-year Treasury bond yield, which typically reacts to geopolitical developments, was also holding steady at 5.555%.
The 2-year Treasury note yield, which tends to move in line with short-term Federal Reserve interest rate decisions, was 1 basis point higher at 4.9472%.
Anthropic's hotly anticipated IPO prospectus warns its AI models pose a "catastrophic or existential risk to humanity," several reports said on Tuesday.
The company, which is gearing up for a much-anticipated IPO, dedicated over a third of its IPO filing, or around 80 of 261 pages, to laying out the potential risks of the technology it's developing and is seeking investment for, according to a report from Reuters. It only used 48 pages to discuss its actual business.
The five-year-old company, known for its frontier language model Claude, warned that AI can have "self-preserving behaviors," including being able to "resist shutdown," "conceal or manipulate information," and carry out behaviors "resembling blackmail," per the Reuters report.
Spain's annual inflation rate rose to 4.9% in September, flash data showed Tuesday, its highest level since early 2023.
Economists polled by Reuters had expected the reading to come in at 4.6%.
Inflation in Spain has risen sharply since the outbreak of the U.S.-Iran war in late February, when it stood at 2.3%.
Asia markets ended mixed on Tuesday. Japan's Nikkei 225 was down 0.6% to end the trading day at 65,481.27, while the Topix declined 1.7% to 4,041.13.
South Korea's Kospi slid 0.3% to 6,870.81, while the small-cap Kosdaq added 0.4% to close at 849.8.
Australia's S&P/ASX 200 rose 0.3% to 8,709.3.
Mainland China's CSI 300 ended the day 0.1% higher at 4,345.21
Hong Kong's Hang Seng Index was down 0.4% in its last hour of trade.
Stocks listed in Europe moved broadly higher on Tuesday, despite oil prices rising.
Ten minutes into the trading session, the pan-European Stoxx 600 index was up almost 0.4%, with sectors mixed and all major bourses in positive territory.
London's FTSE 100, up by 0.3%, led gains.
The leaders of Germany, the Netherlands, Austria, Finland, Denmark and Sweden have written to EU officials to demand that "hundreds of billions" of euros worth of savings are made in the bloc's next seven-year budget.
In the letter, seen by the Financial Times, signatories threatened to withhold their agreement on the budget – due to be negotiated by the end of this year – unless the cuts are made.
The EU's next budget will cover the 2028-2034 period and needs unanimity among the bloc's 27 member states to pass.
The letter's signatories said they wanted resources to go to defense and pioneering companies in Europe, according to the FT, and siphoned away from farming and regions with greater levels of deprivation.
It comes as elevated oil prices and rising inflation fears since the outbreak of the U.S.-Iran war continue to pull European government borrowing costs higher.
Australia's central bank on Tuesday raised policy rates to 4.6%, the highest level in 15 years, as the country looks to contain inflation stoked by the Middle East conflict.
The hike of 25 basis points to the cash rate was in line with expectations by economists polled by Reuters.
The Reserve Bank of Australia has now raised rates four times this year by a total 100 basis points as inflation remains sticky.
In its statement, the RBA said some of the upside risks flagged in its August meeting were now materializing.
"The conflict in the Middle East has broadened and global energy prices are now much higher than had been assumed," the central bank wrote, adding that AI-related demand was driving rapid price increases for technology-related goods.
The RBA also said that it would "continue to do what it considers necessary," to contain inflation, including increasing the policy rate further.
U.S. Treasury yields ticked up on Tuesday, extending a sell-off that has pushed borrowing costs to levels not seen in nearly two decades as investors remained concerned about persistent inflation and prospects of further Federal Reserve rate hikes.
The benchmark 10-year Treasury yield rose 1 basis point to 5.257%, after briefly climbing to 5.274% on Monday, its highest level since 2007.
The renewed pressure on bonds comes as elevated oil prices add to inflation concerns.
The rise in yields suggests bond investors are taking a more hawkish view of the rate outlook than Fed policymakers, according to Evangelos Assimakos, investment director of Rathbones.
“It shows that the market is certainly more hawkish than the Fed,” Assimakos told CNBC. “The Fed was quite sanguine. 12 members out of the 18 were opting for just one rate hike this side of Christmas, whereas the market is certainly looking for a couple.”
Japan's finance minster Satsuki Katayama reportedly told her U.S. counterpart that Prime Minister Sanae Takaichi was "not a reflationist."
According to a Reuters report on Tuesday, Katayama also said that an undervalued yen was "problematic" for the country, pledging to continue communication with the U.S. Treasury.
A reflationist is someone who aims to promote growth in a country via strategies like tax cuts, increased money supply, and lower interest rates.
Takaichi's spending plans have drawn attention, raising concerns of debt sustainability and a weaker yen which have pushed Japanese bond yields to multidecade highs.
Her remarks come after U.S. Treasury Secetary Scott Bessent reportedly said Tokyo's priority should be fighting inflation rather than stimulating growth.
Shares of fast-fashion giant Shein sank more than 11% Tuesday after the company reported a 66.6% year-on-year drop in adjusted net income to $228 million for the second quarter of 2026.
Net revenue rose just 0.9% to $11.1 billion, even as total orders increased 7.6% from a year earlier.
Shein attributed the sharp squeeze in adjusted profitability primarily to a spike in oil prices and freight rates amid geopolitical tensions in the Middle East. The company said it chose to absorb those higher costs rather than pass them on to consumers.
Oil rose Tuesday, extending gains for a second day, as worries over the Mideast conflict continuing for longer take hold, even as efforts to reduce tensions are reportedly underway.
Futures for international benchmark Brent crude for November delivery gained 1.22% to $106.56 a barrel. U.S. West Texas Intermediate futures advanced over 1% to $93.57 per barrel.
The U.S. and Iran are talking separately to mediators as part of renewed efforts to end the conflict. Citing Iranian Foreign Minister Abbas Araghchi, Al Jazeera reported that Tehran held indirect talks with the U.S. via Qatari mediators in New York.
Progress in talks will be the main focus for markets, as regional mediators push for ceasefire negotiations, said Mahmoud Mashal, senior market analyst of VT Markets Dubai, adding that any meaningful progress could drive crude lower.
Major indexes in Asia opened lower Tuesday, tracking Wall Street losses overnight.
Japan's Nikkei 225 declined 0.39%, while the broader Topix fell 1.12%. South Korea's Kospi lost 0.45%, and the small-cap Kosdaq fell 0.27%.
Australia's S&P/ASX 200 bucked the trend to open 0.17% higher.
Asia-Pacific markets were set for a mixed open Tuesday as investors assessed a continued surge in U.S. Treasury yields amid concerns that persistent inflation could prompt further interest rate hikes from the U.S. Federal Reserve.
Japan's Nikkei 225 was poised to open lower, with its Chicago and Osaka futures contracts last at 65,790 and 65,650 respectively, compared with the index's previous close of 65,877.62.
Hong Kong's Hang Seng index futures were at 24,698, higher than the index's last close of 24,642.51.
Futures for Australia's S&P/ASX 200 last traded at 8,726 compared with the index's previous close of 8,679.7.
Summit Therapeutics announced that AstraZeneca will make a $2 billion investment in the company.
The investment is based on a common stock price of $18.36 per share, a premium of more than 18% from Monday's close.
Summit's shares popped almost 20% in extended trading.
The two companies are also collaborating on a clinical trial to evaluate the use of two drugs – sonesitatug vedotin and ivonescimab – in combination to treat certain gastrointestinal cancers.
Michael Burry is moving up the timeline for his bearish thesis on the fate of the artificial intelligence boom.
The investor of "Big Short" fame is switching to put options from short positions on key AI stocks, giving him more cost-effective leverage over a shorter time horizon, he said.
The chipmaker said it was acquiring AI firm World Labs for $8.2 billion. The company was founded by AI researcher Fei-Fei Li, who is seen as an industry pioneer.
"Intelligent agents, whether it's robots or vehicles or even tools, can learn inside very rich. physics-aware digital worlds before they even need to be deployed into the real one, making them much safer," Li said.
"We're unwavering in our mission, and even more excited to continue building a world leading frontier research organization that is durable for the decades ahead," Li wrote in a post.
The average rate on the 30-year fixed mortgage rose to 4.5%, according to data from Mortgage News Daily.
That's the highest level since April 30, 2024, when the average rate hit 7.51%.
Interest rates on the fixed mortgage have been steadily rising alongside a surge in Treasury yields. The 10-year Treasury yield, which influences rates on these home loans, touched a high of 5.274% on Monday for its highest since June 2007.
Dow Jones Industrial Average futures rose just 7 points. S&P 500 futures traded just below the flatline along with Nasdaq-100 futures.