U.S. stocks face yield pressure as dividend names slide and tech leaders extend gains

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U.S. stocks face yield pressure

Highlights

Dividend-focused ETFs SDVY and SDY fell 6.5% and 7% respectively over the past month amid rising Treasury yields, with top dividend stocks down between 7% and 30%.
Tech growth and cybersecurity stocks like Meta Platforms, Moderna, AMD, CrowdStrike, and Fortinet hit new highs, with Moderna up 775% and AMD up 306% from recent lows.
Markets await August durable goods report at 8:30 a.m. ET, with Dow Jones consensus expecting a 0.3% decline, influencing trading as yields remain elevated.

Market drivers before the next session

As reported by CNBC, producers for the network's TV coverage are focusing on the continued climb in Treasury yields and the stocks and sectors most exposed to that move. The First Trust SMID Cap Rising Dividend Achievers ETF, SDVY, is down 9% from its 52-week high and off 6.5% over the past month, while the State Street SPDR S&P Dividend ETF, SDY, is down 7.7% from its July high and 7% over the same period.

Among S&P 500 companies with market capitalizations of at least $10 billion, VICI Properties offers a dividend yield of 7.78% and its stock is down 13% in a month. UPS yields 7.13% and is down 11.7% in September, while General Mills yields 7.01% and is down 15.5% in September. Kraft Heinz is paying 6.71% and is down 7% in September, and Edison International is paying 6.68% after falling almost 30% in a month.

In consumer staples, Clorox and Hormel both touch fresh lows dating back to 2013. Clorox is down 36% from its February high, while Hormel is down 25% from its June high.

Technology strength and economic data in focus

At the same time, several growth and cybersecurity names continue to post new highs, underscoring a sharp divide inside the market. Meta Platforms reaches levels not seen since September 2025 and is up 50% from its March low, while Moderna trades at levels not seen since January 2023 and is up 775% from its November low.

Advanced Micro Devices also hits a new high and is up 306% from its September 2025 low. CrowdStrike reaches a new high and is up 203% from its February low, while Fortinet hits a new high with shares up 142% from their January low.

Investors are also watching the August durable goods report due at 8:30 a.m. ET on Friday. Dow Jones consensus estimates point to a 0.3% decline, giving markets another data point as higher yields continue to shape trading sentiment.

In our earlier article on the rapid rise in the U.S. 10-year Treasury yield, we examined how sharp moves higher in yields have often coincided with bouts of market stress and pressure on risk assets. We also highlighted the areas viewed as most vulnerable to higher borrowing costs—such as regional banks, utilities, homebuilders, and parts of private credit—where leverage and refinancing risks can become more exposed as rates climb.

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