Bond yields spike and stocks drop -- plus, why Boeing is bucking the trend

Stocks fell Wednesday after bond yields jumped on the back of stronger economic data. The benchmark 10-year Treasury yield rose to a new 19-year high above 5.12%, and the selloff in bonds pushed yields higher given their inverse relationship with prices. Markets reacted after an S&P Global US Flash PMI beat expectations: the manufacturing index climbed to 57 in September from 53.9 in August, the biggest improvement since May 2022, while input costs and price pressures rose. Investors interpreted the strength as reason for the Federal Reserve to keep rates elevated. The S&P 500 fell nearly 1% and the Nasdaq dropped more than 1%. Boeing shares gained over 1.5% after the engineers’ and technical employees union recommended accepting a new contract offer, ahead of an Oct. 9 strike deadline.