Treasury Yields Soar to 19-Year High, Sparking U.S. Stock Rout

U.S. stocks plummeted on September 23 as Treasury yields hit their highest level in nearly two decades, fueled by strong economic data and hawkish signals from Federal Reserve officials.

The Dow Jones Industrial Average fell 0.68%, the S&P 500 dropped 0.75%, and the Nasdaq slid 1.13% as investors priced in a roughly 70% probability of a rate hike in October, according to the CME FedWatch Tool.

Semiconductor stocks led the decline, with Broadcom, Micron, Nvidia, AMD, and Intel falling between 1.02% and 2.62%. Big tech shares were mixed, with Alphabet Class A shares plummeting 3.80%, while Microsoft rose 0.52%

Energy stocks benefited from the oil rally, with ExxonMobil rising 1.59% and Chevron gaining 1.53%. The CBOE Volatility Index (VIX) jumped 7.24% to 15.24, signaling heightened market caution.