The Dow Jones Industrial Average closed down 341 points to 51,179.87 on Wednesday, pressured by a surge in the benchmark 10-year Treasury note yield to its highest level since April 2002. The broader market sentiment weakened, with the CNN Business Fear & Greed Index holding steady in the "Neutral" zone.

Market indices and sector performance

The decline was broad-based, with most sectors on the S&P 500 finishing lower. Industrials, materials, and real estate stocks recorded the largest losses. Conversely, health care and consumer discretionary sectors bucked the trend, closing higher. The S&P 500 slipped 0.22% to 7,801.77, while the Nasdaq Composite declined 0.22% to 27,538.69.

Sentiment and economic indicators

The CNN Business Fear & Greed Index registered a reading of 45 on Wednesday, down from a prior reading of 47. This index, which ranges from 0 (maximum fear) to 100 (maximum greed), remained in the "Neutral" zone. On the economic front, mortgage applications dropped 4.2% in the week ending October 2, marking the fifth consecutive weekly decline.

Corporate movements and upcoming earnings

Eli Lilly and Co. (NYSE: LLY) shares gained 2.7% after Morgan Stanley maintained its Overweight rating. Investors also reacted to Lilly’s $870 million deal with Gate. Market participants are awaiting upcoming earnings results from Helen of Troy Ltd (NASDAQ: HELE), PepsiCo Inc (NASDAQ: PEP), and Tilray Brands Inc (NASDAQ: TLRY).

What the numbers show

The simultaneous rise in long-term yields and the drop in mortgage applications highlight a tightening credit environment impacting housing demand. While the Fear & Greed Index remained neutral, the specific decline in mortgage volume suggests that higher borrowing costs are already affecting consumer behavior, even as equity markets show mixed sectoral resilience.

US stocks traded higher on Monday, with the Dow Jones Industrial Average gaining around 100 points to close at 51,277.22. The index rose 0.20%, while the NASDAQ jumped 0.84% to 27,418.49 and the S&P 500 climbed 0.62% to 7,770.45.

The rally occurred despite a decline in the Institute for Supply Management (ISM) services Purchasing Managers' Index (PMI), which fell to 54.9 in September from 55.4 in August. This figure missed market estimates of 55, signaling a slight contraction in momentum within the service sector.

Sector performance and market movers

Materials shares led the gains, jumping 1.2%. In contrast, real estate stocks lagged, falling 0.1%. Individual equities drove significant volatility across the market.

Top gainers

• Columbus Acquisition Corp (NASDAQ: SAIQ): Shares surged 286% to $7.14 following the completion of its business combination with WISeSat.Space, a subsidiary of WISeQey Corp., announced for October 1, 2026.
• HeartBeam Inc (NASDAQ: BEAT): Stock rose 70% to $0.7370 after receiving FDA breakthrough device designation for heart attack assessment.
• Vaxcyte Inc (NASDAQ: PCVX): Shares jumped 40% to $79.00 after positive topline results from the Phase 3 OPUS-1 trial for its investigational pneumococcal conjugate vaccine.

Top decliners

• Flux Power Holdings Inc (NASDAQ: FLUX): Fell 23% to $0.4899 after rejecting an acquisition proposal from Solidion Technology Inc.
• CH Robinson Worldwide Inc (NASDAQ: CHRW): Dropped 11% to $140.19 following the announcement of its acquisition of RXO.
• Camping World Holdings Inc (NYSE: CWH): Slipped 10% to $4.52 as the company projected FY26 adjusted EBITDA below the low end of its guidance range of $230 million-$270 million.

Global market and commodity updates

European markets were mixed, with the STOXX 600 gaining 0.2% and Spain's IBEX 35 rising 0.7%. France's CAC 40 fell 1.1%, while the FTSE 100 and DAX edged up by 0.1% each. Asian markets closed higher, led by Japan's Nikkei 225 surging 2.40%.

In commodities, oil traded down 1% to $90.17, while gold rose 0.1% to $4,164.60. Silver gained 1.8% to $61.515 and copper rose 1% to $6.6130.

What the numbers show

A divergence appears between private sector surveys and official ISM data. The S&P Global services PMI climbed to 58.8 in September from 56.5 in August, revising higher from the flash reading of 58.7. Simultaneously, the S&P Global composite PMI surged to 58.4 from 56 in August. While the ISM services PMI contracted slightly to 54.9, the S&P Global metrics indicate stronger expansionary momentum, suggesting differing methodologies or sample sets are capturing distinct aspects of economic activity.