Wall Street Slides as 10-Year Treasury Yield Hits 5.13%, Highest Since 2007; Nasdaq and SOX Drop Over 1%

U.S. stocks closed broadly lower Wednesday, Sept. 23, 2026, as strong economic data and weak demand at a $70 billion five-year Treasury auction drove the 10-year yield above 5.13% intraday, its highest since July 2007. The Dow fell 352.10 points, or 0.68%, to 51,511.59; the Nasdaq dropped 1.13% to 26,936.04; the S&P 500 slid 0.75% to 7,706.03; and the Philadelphia Semiconductor Index lost 1.23% to 12,534.28. S&P Global's September services PMI rose to 58.7 from 56.5, a near five-year high, while manufacturing PMI climbed to 56.7, stoking inflation concerns. Fed Governor Michael Barr said further policy adjustments may be needed. CME FedWatch showed traders pricing a 66% chance of a quarter-point hike in October, up from 55.4% a day earlier. Brent crude rose 3.86% to $103.08 a barrel, adding to inflation worries. Markets now eye Thursday's Trump-Xi meeting in Washington on trade, rare earths and AI.