Stocks close lower as the 2-year yield jumps to 4.92%; gold falls about 4% and Boeing drops 7%
The S&P 500 fell 0.77% as both the 2-year and 10-year Treasury yields finished at their highest official closes of 2026. Nvidia rose after a $150 billion buyback.
Stocks fell Monday as the selloff in Treasuries resumed. The Dow Jones Industrial Average lost 347.11 points to 51,481.51, the S&P 500 dropped 59.72 points to 7,683.69 and the Nasdaq Composite fell 248.34 points to 26,820.38, according to Yahoo Finance closing data. CNBC reported the same closes and said the indexes came off their lows around midday after reports that President Trump was open to sanctions relief for Iran, which pulled crude off its highs.
| Index | Close | Change |
|---|---|---|
| S&P 500 | 7,683.69 | -0.77% |
| Nasdaq Composite | 26,820.38 | -0.92% |
| Dow Jones Industrial Average | 51,481.51 | -0.67% |
| Russell 2000 | 2,817.91 | -0.69% |
The short end did the damage
The Treasury's official closing curve shows the 2-year yield up 11 basis points to 4.92% and the 10-year up 7 to 5.24% (Treasury data). Both are the highest closes of 2026 on that series. The 1-year bill rose 9 points to 4.59%. Kitco News cited market odds of roughly 68% to 70% for another Fed rate increase in October, and Fed Governor Lisa Cook said Monday that future moves would depend on inflation and labor data, according to CNBC.
The number that matters for borrowers is how far this has run in a month. Since August 31, the 2-year is up 58 basis points and the 5-year is up 57, from 4.49% to 5.06%. Equipment loans and fixed-rate business term loans are usually priced off that part of the curve. As an illustration only, if a lender passed a 0.57-point move straight through, a $100,000 five-year loan at 8% would go from about $2,028 a month to about $2,055 at 8.57%, roughly $1,640 more over the life of the loan. Chart: 10-year T-note.
What moved
Boeing fell 6.91% to $184.39, the Dow's biggest drag, after the FAA said it would not certify the 737 Max 10 until it assesses a new software issue (our earlier coverage). Meta fell 4.79% to $715.62 after a nearly 13% gain last week, Tesla lost 3.94% and AMD dropped 3.61%. Nvidia went the other way, up 1.68% to $228.86, after adding $150 billion to its buyback, taking the authorization to $235 billion.
By SPDR sector fund closes, communication services led the decline at -1.58%, followed by consumer discretionary at -1.41% and financials at -1.19%. Only health care (+0.33%), consumer staples (+0.27%) and energy (+0.10%) finished higher.
Gold took the heaviest hit of the day. December gold futures fell $168.50, or 3.90%, to $4,152.70 an ounce, and silver futures lost about 4.9% to near $61.12. Kitco tied the drop to higher yields and a firmer dollar. Newmont fell 4.43%.
What comes next
JOLTS job openings arrive Tuesday, forecast at 7.225 million, according to our economic calendar. The August PCE inflation report and ADP payrolls follow Wednesday, ISM manufacturing Thursday, and the September jobs report on Friday is forecast at 90,000.
Sources: Yahoo Finance, U.S. Treasury, CNBC, Kitco News, Chronicle markets board. Futures prices are the latest Yahoo Finance quotes after the stock close. The loan example is arithmetic, not a quote. This is market information, not investment advice.
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