Update: US Equity Indexes Decline as Benchmark Treasury Yield Heads Back Toward Highest in Almost 19 Years

01:52 PM EDT, 09/18/2026 (MT Newswires) -- (Updates with index/price moves and company/geopolitical news from the first paragraph.) US equity indexes fell amid a broad-based retreat as government bond yields rebounded, with the 10-year hovering near its highest level in almost two decades. The Nasdaq Composite slipped less than 0.1% to 26,407.2, the S&P 500 declined 0.1% to 7,627.5, and the Dow Jones Industrial Average retreated 0.4% to 51,587.1 after midday Friday. All sectors except technology retreated. Materials and utilities led decliners. US Treasury yields rose after midday. The 10-year yield jumped 5.1 basis points to 5%, trading near its strongest level since 2007. The two-year yield climbed 4.9 basis points to 4.74%, a multi-month high. "We now expect two more hikes from the [Federal Reserve], and our commodity analysts see energy markets facing a convergence of supply chain disruptions," Morgan Stanley said in a note. "A higher expected path for oil prices means disinflation will be slower, and more restrictive policy also weighs on growth in 2027." Morgan Stanley expects two 25 basis-point increases in December and March to a target range of 4.25 to 4.50%. "They hold there through the end of next year." US equity funds recorded outflows for a fourth consecutive week as rising crude oil prices heightened inflation concerns and expectations of a Fed rate increase added to investor caution ahead of its policy decision, Reuters reported. The United Kingdom Maritime Trade Operations said an unknown projectile hit a tanker in the Strait of Hormuz, Al Jazeera, a Middle Eastern broadcaster, reported. Earlier, Iran's Islamic Revolutionary Guard Corps said it struck a Togo-flagged tanker as it attempted an "illegal passage" through the strait. The front-month US West Texas Intermediate crude oil contract fell 1.2% to $100.67 per barrel, while the global benchmark North Sea Brent declined 1.2% to $103.57 per barrel. Gold futures rose 0.6% to $4,424.40, and silver futures jumped 1.6% to $67.19. In company news, Nucor (NUE) shares slumped 6.3%, the worst performer on the S&P 500, after the company said late Thursday it expects Q3 earnings of $5.55 to $5.65 per diluted share, below analysts' consensus.