[U.S. Market Recap] Sept 23: Dow Falls 352 Points for a Third Straight Decline as 10-Year Yield Tops 5.1%, While Quantum Computing and Memory Stocks Surge

Hey everyone, Hirokichi here. Today I’m recapping the U.S. market session from Wednesday, September 23, 2026. All three major indexes closed lower, with the Dow dropping 352 points for its third straight decline. A sharp jump in long-term interest rates weighed on the broader market, while individual names in quantum computing and semiconductor memory told a very different story.

The Indexes: All Three Fall as Long-Term Yields Surge

Here’s how the major indexes closed (sources: CNBC, TheStreet).

As the table shows, the Nasdaq took the biggest hit, reflecting heavier selling in tech names. Note that the S&P 500’s point change is a rough estimate derived from the percentage move, since I couldn’t confirm the exact figure. The small-cap Russell 2000 fell even more, down 1.60%. This came a day after Tuesday’s session, when the Nasdaq hit a fresh record close of 27,244 — a sharp reversal in just 24 hours.

What Moved the Market: Red-Hot PMI Data and 10-Year Yields Above 5.1%

The story of the day was interest rates. The flash September PMI readings (Purchasing Managers’ Index, a gauge of business activity) came in well above expectations across the board (source: Fisco).

– Manufacturing PMI: 57.0 (vs. 53.7 expected, 53.9 in August)
– Services PMI: 58.7 (vs. 55.8 expected)
– Composite PMI: 58.4 (vs. 55.3 expected, the strongest reading in over five years)

You’d think strong economic data would be good news, but the stock market read it as a sign that the Fed (Federal Reserve, the U.S. central bank) might not rush to cut rates — and could even hike further. Fed Governor Barr reportedly signaled that additional rate hikes may be needed, and a weak 5-year Treasury note auction added to the pressure. As a result, yields across the curve jumped sharply. The 10-year Treasury yield climbed to 5.135%, its highest level since July 2007 (source: CNBC), while the 5-year yield briefly broke above 5% for the first time since 2007 as well (source: TheStreet). When rates rise quickly, the discount rate used to value future profits goes up too, which tends to hit growth-oriented tech stocks the hardest — a likely reason the Nasdaq underperformed.

The rate jump also boosted the dollar: USD/JPY climbed from 157.76 to 158.40 by the close (source: Fisco), extending the yen’s weakening trend — worth watching for anyone holding dollar-denominated assets or Japanese exporter stocks.

Stocks in the Spotlight: Quantum Computing and Memory Chips Surge

While the broader market was soft, several individual names had a very active day. Here are five worth a closer look.

IonQ (IONQ): Jumps on a Quantum Computing Breakthrough

Quantum computing company IonQ closed up 4.79% at $42.70. The company announced a successful demonstration of a “real-time quantum error-correction decoder” — a technology that lets a single general-purpose processor continuously detect and correct errors in a quantum system, addressing a bottleneck that used to require far more computing power. Adding to the buzz, reports emerged that IonQ’s quantum system will be installed at Nvidia’s accelerated quantum research center. Interestingly, Nvidia (NVDA) itself closed slightly lower at $225.51 (-0.82%), so the partnership news mostly benefited IonQ on an otherwise soft day for the broader market. The stock had jumped more than 11% in premarket trading before paring some of those gains into the close.

Micron Technology (MU): Memory Shortage Fears Provide a Tailwind

Memory chip maker Micron Technology closed up 5.00% at $1,096.16. The move followed comments from rival Intel’s CEO, who said memory prices have surged more than 500%, pointing to an AI-driven supply shortage that could persist into next year. Research firm TrendForce has estimated that server DRAM (memory chip) contract prices rose 64% in the second half of 2025, with further increases expected in 2026. Micron reports earnings on September 30, and today’s move looks like anticipatory buying ahead of that report.

Cracker Barrel (CBRL): Shares Jump on a Big Earnings Beat

Restaurant chain Cracker Barrel surged after reporting quarterly results, closing up roughly 5.5% on the day. Adjusted earnings came in at 99 cents per share versus analyst expectations of around 10 cents — a massive beat — while revenue of $849.3 million also topped estimates. UBS raised its price target from $37 to $46, citing progress in the company’s turnaround plan.

AppLovin (APP): Falls on a Bearish Analyst Note

Ad-tech company AppLovin dropped 6.18% to around $314. The trigger was a note from Edgewater Research warning that growth in the company’s MAX advertising platform’s market share appears to be stalling. The decline was compounded by reports of a newly filed securities lawsuit alleging inaccurate disclosures about the company’s AI models. Given how strong the stock had been running, the market reacted sharply to any sign that growth could be slowing.

Disney (DIS): Price Hike News, But Shares Slip Into the Close

Walt Disney announced it will raise subscription prices for Disney+ and Hulu by as much as 13%, with the main plan rising from $18.99 to $21.49 a month. Shares briefly moved higher on the news in early trading, but couldn’t hold the gains against the weak broader market, closing down slightly at $103.86 (-0.36%). This marks the sixth straight year of price increases — investors seemed more focused on how much subscriber pushback the hike might draw than on the hike itself.

Sector and ETF Moves: Only Energy Stayed in the Green

Among the S&P 500’s 11 sectors, only Energy (+0.89%) finished higher on the day (source: TheStreet). Reports that an armed group had shut a valve on a pipeline from Libya’s largest oil field, cutting off a major source of supply, supported oil prices and energy stocks. On the downside, Utilities and Consumer Discretionary each fell more than 1% (source: CNBC) — a reminder that rate-sensitive, dividend-focused sectors like utilities tend to get hit hardest when yields spike.

For ETFs popular with Japanese retail investors, broad-market funds like VOO (S&P 500) and QQQ (Nasdaq-100) likely tracked their underlying indexes lower. Dividend-focused ETFs with heavier energy exposure, such as SPYD, HDV, and VYM, may have held up relatively better given Energy’s gain, though I couldn’t confirm the exact day’s performance for these funds, so take that as a general observation rather than a confirmed figure.

What to Watch in Japan Today

Following the U.S. selloff and the jump in long-term yields, Tokyo’s market is expected to open lower on September 24. With the Nikkei 225’s previous close at 66,422, some observers see downside support around the 65,400 level (source: Jiji Press). Uncertainty around U.S.-Iran talks in the Middle East remains an additional headwind.

(1) Rising U.S. long-term yields and a weaker yen (now above 158) tend to favor exporter stocks while pressuring domestic, rate-sensitive names.
(2) Following Micron’s surge on memory shortage fears, related Japanese names like Kioxia Holdings could draw extra attention today.
(3) With Chinese President Xi Jinping’s state visit and a possible summit with President Trump on the horizon, headlines around U.S.-China relations could sway sentiment.

Let’s keep at it, slow and steady. Have a good day!

* This article is for informational purposes only and does not recommend any specific investment. Please make investment decisions at your own responsibility.

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