Stocks drop after 10-year yield reaches 5%, oil jumps; Nasdaq falls 1% as AI names slide: Live updates

BREAKING: US stocks slide as the 10-year Treasury yield hits 5% for the first time since 2023 and oil surges, with the Nasdaq down 1% as AI names lead the sell-off.

The 10 year Treasury yield just touched five percent for the first time since 2023.

And Wall Street did not take it well. The S&P dropped 0.7 percent, the Dow shed 233 points, and the Nasdaq fell a full one percent. You can see the mood on the floor here, and it's not a happy one. The AI trade took the worst of it, Nvidia and Broadcom down 3 percent, AMD and Intel off 5, Marvell down 6. All of that after the weekend's slow-down-AI chatter and Sam Altman calling an OpenAI listing this year ill-advised.

Pile on oil, with WTI above 103 dollars after Saudi Arabia shut a key pipeline, and you get bond yields, crude and nerves all rising together.

Now the hard part. The Fed meets Wednesday, and traders are pricing a roughly 90 percent chance of a hike. Five percent money, hundred dollar oil, and a central bank leaning hawkish. That's the whole market in one sentence, and none of it is friendly.

This is Sara White, reporting for HIT.