Oil-Driven Selling Persists at Midday as Treasury Yields Hit Decade High

Equity benchmarks remained under pressure in midday trading Wednesday, with climbing crude prices continuing to weigh on investor sentiment across major indexes.

As of 11:45 AM ET, the S&P 500 had fallen 0.38% to 7,607, while the Nasdaq Composite slipped 0.42% to 26,140. The Dow Jones Industrial Average lagged slightly, down 0.49% at 52,156.

Beyond energy, another pressure point emerged in the bond market. The yield on the 10-year Treasury climbed to 4.92%, marking a 10-year high. Rising yields typically tighten financial conditions and can weigh on valuations, particularly for growth-oriented sectors. Gold, often viewed as a safe-harbor asset, bucked that role on the day, declining 1.09% to $4,412.10.

Sector performance was mixed. Utilities and consumer cyclicals posted the largest gains of the session so far, while basic materials led declines.

Company Movers

Apple traded modestly higher as the market absorbed the company’s introduction of a new foldable iPhone. Shares changed hands at $323.48, up 1.72% from the prior close of $318.00, valuing the consumer electronics giant at roughly $4.6 trillion. The device launch gives Apple a foothold in a form factor that rivals have pursued for years, and investor reception appeared constructive despite the broader market’s softness.

AeroVironment was among the day’s notable gainers, jumping 5.47% to $154.26 after the defense technology company reported record revenue and pointed to a robust backlog. The Arlington-based firm, which designs robotic systems including autonomous drones for government and commercial customers, saw demand signals overshadow the risk-off tone in the wider market. Its market capitalization stood at approximately $7.2 billion.

Retailer Macy’s moved in the opposite direction, slipping even after reporting quarterly results that exceeded expectations — a reminder that in a yield-sensitive tape, beats alone have not been enough to sustain rallies.

With crude staying elevated, market participants will be watching whether energy-driven inflation concerns extend the rise in Treasury yields, which has become a central theme of this week’s trading.

What to watch

• Where the 10-year Treasury yield settles at the close and whether it holds above the 4.9% level.
• Additional details from Apple on foldable iPhone pricing, availability, and initial demand.
• AeroVironment’s full quarterly report and any updated backlog or guidance figures.
• Upcoming earnings reports from major retailers that could confirm or challenge the consumer cyclical strength seen today.
• Crude oil price direction heading into the final hours of the session.

Source: original release