US stocks slide as surging bond yields overshadow strong PMI data

US stocks fell across the board on Wednesday, September 23, as a sharp rise in long‑term Treasury yields put renewed pressure on equity valuations. The 10‑year yield climbed to its highest level since 2007, reinforcing the view that the Federal Reserve may keep interest rates elevated for longer to tame inflation. That backdrop weighed particularly on growth stocks and other names trading at high earnings multiples, which are more sensitive to changes in discount rates.

Ironically, the sell‑off came even as economic data surprised to the upside. The S&P Global flash manufacturing PMI for September jumped to 57, its strongest reading in more than four years and well above economists’ expectations. While the data signaled resilient activity, investors worried that stronger growth could encourage the Fed to stick with its restrictive stance. A few AI‑linked leaders managed to attract buying, but financials, industrials and large parts of the tech sector finished lower. Markets are now grappling with a familiar trade‑off: solid economic momentum on one side, and the drag from persistently high interest rates on the other.