Oil Spike and Surging Yields Rattle U.S. Stocks Ahead of Fed Week

U.S. equities sold off sharply on Friday, October 23, with the Dow Jones Industrial Average tumbling more than 600 points as all major indexes finished in the red. The sell‑off came as oil prices jumped and Treasury yields climbed, rekindling fears that inflation could stay sticky and force the Federal Reserve to keep policy tight for longer. Brent crude futures surged into the high‑$110s per barrel, while the 10‑year U.S. Treasury yield hovered near the 5% mark. For investors, that combination raises operating costs for energy‑sensitive sectors and pushes up the discount rate applied to future earnings, weighing on equity valuations. With a heavy slate of third‑quarter earnings from mega‑cap names and the October Fed meeting just days away, traders were quick to de‑risk and trim exposure to the most rate‑sensitive parts of the market. European shares also closed mostly lower, as rising regional bond yields and ongoing stress in the French government bond market added to the global "risk‑off" tone and kept volatility elevated across assets.