<div id="readability-page-1"><p>After opening in the green, both the S&amp;P 500 (SPX) and the Nasdaq 100 (NDX) are now in negative territory as investors assess rising rates.</p><h3>Claim 55% Off TipRanks</h3>Trade QQQ with leverage <p>The 10-year Treasury yield is at 4.60%, its highest level since January 2025, while the 30-year yield is trading at 19-year highs. That poses an issue for stocks, as rising yields make bonds more attractive and pressure equity valuations with higher discount rates.</p> <h2><strong>Higher Yields Raise Debt Costs and Correction Risk</strong></h2> <p>Furthermore, rising yields can result in higher U.S. government debt payments. The current 10-year yield is roughly 40 bps above projections from the Congressional Budget Office (CBO). That could tack on an extra $1.5 trillion to U.S. debt if rates remain there over the next decade, according to the Committee for a Responsible Federal Budget (CRFB).</p> <p>Morgan Stanley warned on Monday that the stock market faces a &#34;meaningful correction&#34; if rates remain elevated. Chief Investment Officer Mike Wilson added that bond volatility will likely continue until the U.S.-Iran war draws to a close.</p></div>

.NDX

<p>The stock market is down as the S&P 500 and Nasdaq 100 turn negative due to rising interest rates. The 10-year Treasury yield is at 4.60%, its highest since January 2025, impacting equity valuations. Higher yields could increase U.S. government debt payments by $1.5 trillion over the next decade. Morgan Stanley warns of a potential market correction if rates stay high, with ongoing bond volatility linked to geopolitical tensions.</p>

- The S&P 500 and Nasdaq 100 have moved into negative territory as rising Treasury yields are impacting investor sentiment.  
- The 10-year Treasury yield has reached 4.60%, while the 30-year yield is at a 19-year high, which increases the attractiveness of bonds over stocks and may raise U.S. debt costs significantly.  
- Morgan Stanley cautions that if elevated rates persist, a meaningful correction in the stock market is likely, particularly amid ongoing bond volatility.

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Why Is the Stock Market Down Today, 5/18/26?