Higher yields are taking their toll on all areas of the stock market, except the one that matters

Higher yields are taking their toll on all areas of the stock market, except the one that matters Options traders are betting on a dramatic drop in interest rates Opinion: Higher yields are taking their toll on all areas of the stock market, except the one that matters Technology is the only one of the S&P 500’s 11 sectors that gained since Sept. 1, as Treasury yields have climbed to multi-decade highs Rising bond yields have been hurting every sector except the one that has been strong enough to lift the market indexes to record highs. Yes, that sector is technology. The S&P 500 may have reached a record close this week, but that doesn’t mean all is well in the stock market.

In fact, rising interest rates are taking a toll across the market, and it’s becoming clear that one sector alone is keeping things from unraveling. That one sector, which should come as no surprise, is technology. Since Sept. 1, the State Street Technology Select Sector SPDR exchange-traded fund has advanced 10% through Oct. 6, while the SPDR S&P 500 ETF Trust has gained 2.3%.

The next best performing sector was communication services , which has tacked on 0.7%. Every other sector in the S&P 500 has declined. Copyright ©2026 MarketWatch, Inc.

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Fed’s minutes show no appetite for a series of interest-rate hikes Microsoft and Nvidia are teaming up on a supercharged AI laptop Michael Krameris the founder of Mott Capital Management and a long-only investor focused on macro themes. A former buy-side trader, analyst and portfolio manager with more than 30 years of experience, he analyzes long-term macro trends and short-term market risk using technical analysis, fundamentals and options-market positioning. Intraday Data provided by FACTSET and subject to terms of use.

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