Market Midday: Stocks Fall, 10-Year Yield Hits 24-Year High, Inflation Fears Rise • 10/7/26

0:01See NBC Business News update Wednesday midday. Major averages are all in the red this afternoon. The S &P 500 index and the Nasdaq have pulled back from record highs yesterday. The yield on the 10-year Treasury hit its highest today in 24 years, 3.35 percent. It has since ticked a little lower, but the damage is kind of done. The Dow's down 405 points. Caterpillar shares are down almost 6 percent this afternoon. Sherwin-Williams shares down 2%. The S &P 500 index is down 28 points. The Nasdaq down 129 points. NVIDIA shares are down about eight-tenths of a percent. We've got to be a little bit cautious.

0:42It's a little bit spooky as we're continuing to see less than 20 % of all stocks that we're measuring are in some form of an uptrend at this point in time. And our new highs, new lows indicators, they're in sell signals at this point in time. I'm a little bit worried in the short term here. I think you've got to get some backing and filling in this market, just given the weak underlying participation and breadth of this market. Piper Sandler's Craig Johnson on CNBC. Americans' inflation fears are getting a little worse in the New York Fed survey, hitting the highest level since May of 2023. Here's CNBC's Steve Leisman, our senior economics reporter.

1:21Fed surveyed consumer expectations for December showing that one year inflation expectations hit their highest level since May 2023. And you also saw increases for expectations for gas, for food, medical care, rent and college education. All the things that matter. People think those prices are going up. The results come with Fed officials grappling over the proper setting of interest rates. Markets expect the central bank to stay on hold when it releases its next decision later this month. Oil edged higher over Houthi attacks on Saudi Arabia, but since pulled back a little this afternoon. U.S.

1:56crude oil back below$90 a barrel. The world's benchmark Brent back around$100 a barrel. All of this while insurance companies are watching tropical storm Isaias in the Gulf. It's expected to strengthen into a hurricane and hit the U.S. Gulf Coast. If that happens, there's potential to impact refineries, which could then push prices at the pump higher for American drivers. Chevron CEO Mike Wirth tells CNBC oil inventories are already very low globally, and we're heading into winter. Well, I think it's a very serious situation. We came into this year with high inventories. Over the last several months, we've seen commercial inventories draw down, strategic stocks be released, and those sanctioned barrels have been relieved and allowed to be delivered as well.

2:44Those are all buffers in the system that have bought us time, but they've been drained. And so we're at much lower levels of inventory right now, and it makes the system more vulnerable to disruption. The Powerball jackpot inching toward a half billion dollars tonight at$485 million. Jessica Ettinger, CNBC. From gas prices to housing prices, from government spending to consumer spending, from the AI boom to the data center backlash. How will this election hit your pocketbook and your portfolio? Continuing coverage, the economy election, CNBC. Introducing Fidelity Trader Plus. With customizable tools and charts you can access across all your devices.

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