Update: Equities Drop Intraday as Yields, Oil Advance

02:06 PM EDT, 09/24/2026 (MT Newswires) -- (Updates with latest market prices and developments.) US equity benchmarks fell intraday as bond yields and oil prices moved higher, keeping inflation-wary investors on edge. The Dow Jones Industrial Average was down 0.4% at 51,303.6 after midday Thursday, while the Nasdaq Composite fell 0.2% to 26,890.8. The S&P 500 slipped 0.1% to 7,698.2. Among sectors, materials saw the steepest decline, while communication services paced the gainers. Treasury yields were higher intraday, with the 10-year yield up 4.2 basis points at 5.16%, and the two-year yield rising 0.6 basis point to 4.9%. The 30-year yield hit the highest level since 2004 at around 5.45% earlier in the day, CNBC reported. "Longer-end yields are now near the highest levels in decades," Stifel said Thursday in a note e-mailed to MT Newswires. The rally reflects "a number of longstanding issues, including dangerously high levels of inflation for years, a massive expansion of the government's balance sheet with total debt now surpassing $40 (trillion), and sizable corporate issuance offering direct competition for US Treasury bonds," the investment firm said. Philadelphia Fed President Anna Paulson said Thursday that "some modest further tightening may be warranted" to bring inflation down to the 2% target. "Returning inflation to 2% is non-negotiable, and I will support the policy path that gets us there while carefully weighing risks to the labor market along the way," she said. Speaking at the London Macro Policy Forum, New York Fed President John Williams said on Thursday that it would be "reasonable" to expect another Fed interest rate hike by the end of the year, CNBC reported. Markets are pricing in a 69% probability that the Fed will lift interest rates again by 25 basis points in October, according to the CME FedWatch tool. The remaining odds point to a Fed pause. US President Donald Trump is hosting Xi at the White House for a landmark state visit. On Wednesday, Treasury Secretary Scott Bessent said the two countries agreed to extend their trade truce by two months. West Texas Intermediate crude oil was up 2.2% at $94.19 a barrel intraday, while Brent advanced 2.2% to $105.39. Saudi Arabia intercepted six ballistic missiles fired by Yemen's Iran-backed Houthis on Thursday, Reuters reported. MGM Resorts International's (MGM) shares were the worst performer on the S&P 500, down nearly 11%, after digital and print media company People (PPLI) late Wednesday withdrew its buyout proposal for the casino operator. People's shares were up 0.4%. Darden Restaurants' (DRI) fiscal first-quarter revenue narrowly missed market expectations as comparable sales were weaker than expected, while the company affirmed its full-year outlook. The stock fell 1.6%. Warehouse chain Costco Wholesale (COST) is scheduled to release its quarterly results after the markets close on Thursday. Spot gold edged down 0.5% to $4,265.18 per troy ounce, while silver lost 1.1% to $64.23 per ounce.