Caterpillar's Decline Wipes Out 255 Dow Points Amid Treasury Yield Surge

The Dow Jones Industrial Average dropped by 255 points due to Caterpillar's decline of 4.9%, but most stocks barely reacted.

Twenty of the Dow's 30 components rose, yet the index finished the morning lower.

Home Depot was one of the few winners, rising after beating second-quarter estimates despite noting that shoppers are choosing smaller projects amid high interest rates on loans and credit lines.

The 10-year Treasury yield has climbed to 4.71% from 3.97% before the war with Iran began in February, which could lead to further compression of valuations for AI-related stocks.