Stock Market Midday, Oct. 7: Rising Treasury Yields Pressure Stocks, Caterpillar tumbles over 6%
On Oct. 7, 2026, major indices pull back as bond yields surge and oil prices rise again.
At 11:36 AM ET, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all saw declines as the market grappled with rising Treasury yields. The S&P 500 slipped 0.51% to 7,779, the Nasdaq Composite fell 0.55% to 27,449, and the Dow Jones dropped 0.98% to 51,018, marking a retreat from their record highs reached on Tuesday. Gold prices also experienced a decline of 1.53%, trading at $4,100.75, while the 10-Year Treasury yield rose by 4 basis points to 5.31%, nearing its highest level since 2002.
Notably, industrials and basic materials suffered the most significant losses throughout the trading session, while healthcare and consumer defensive stocks managed to gain ground. Caterpillar, an industrial leader, experienced a decline of over 6%, contributing to the Dow Jones' drop. This downturn was primarily attributed to an analyst downgrade and heightened investor concerns over artificial intelligence (AI).
Additionally, Deere, a company in the agricultural equipment sector, saw its stock slide due to a federal inquiry into its business practices. Webull, a trading platform, experienced a significant 20% drop following reports of a congressional committee raising concerns about its ties to China.
Conversely, ZIM Integrated Shipping Services emerged as a notable gainer, climbing after the company raised its 2026 full-year guidance.
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