Waller's comments lifted yields

February 23, 2026 at 21:00 UTC

4 min read

Treasury yields chart rising after Waller's comments, impacting US growth stocks and indexes

Key Points

Waller's data-dependent remarks pushed Treasury yields higher and pressured growth-sensitive equities.
US benchmarks closed lower as yield-driven selling hit growth names, amplifying index losses.
Germany's Ifo Business Climate unexpectedly rose to 88.6, which supported regional sentiment.
The Bank of Israel held its policy rate at 4.0%, which strengthened the shekel about 1.1% versus the dollar.
Indonesia posted a 54.6 trillion rupiah January deficit after spending jumped, prompting moves in local equities, the rupiah and 10-year yields.

Global Market Summary

US benchmarks closed lower: the Dow Jones Industrial Average (DJIA) fell 1.69%, the S&P 500 (SPX) dropped 1.10%, and the Nasdaq Composite (^IXIC) slid 1.26% as Fed Governor Waller's data‐dependent comments pushed Treasury yields higher and weighed on growth‐sensitive names. In Europe the DAX (DAX) fell 1.06%, the CAC 40 (FRA40) slipped 0.22% and the FTSE 100 (UKX) was essentially flat (-0.02%), while Asia's Hang Seng (HSI) rallied 2.53%.

Top Movers

Sector leadership: Consumer defensive (XLP) +1.32% and Healthcare (XLV) +1.04% outperformed, while Consumer discretionary (XLY) lagged -2.33%. Top stock gainers: ACLX (+77.44%), VRE (+12.40%), IBRX (+11.67%). Largest decliners: NVO (-16.25%), BLLN (-14.84%), IBM (-14.05%).

Macro highlights

Fed Governor Waller flagged a data‐dependent case for pausing further easing if upcoming labor and inflation releases confirm stabilization, a stance that pushed Treasury yields higher and pressured growth‐sensitive equities. Germany's Ifo Business Climate unexpectedly rose to 88.6, supporting regional sentiment, while the U.S. Census reported December factory orders fell 0.7% m/m with limited market reaction. The Bank of Israel held its policy rate at 4.0%, strengthening the shekel about 1.1% versus the dollar.

News that moved markets

Indonesia posted a 54.6 trillion rupiah budget deficit for January after spending jumped 25.7% year‐on‐year, heightening investor scrutiny of sovereign funding needs and prompting moves in local equities, the rupiah and 10‐year government bond yields. Domino's Pizza (DPZ) reported a Q4 revenue beat, diluted EPS of $5.35 and a roughly 15% increase to its quarterly dividend to $1.99, prompting a positive reaction in the shares in early trading. Hexagon completed the sale of its Design & Engineering business. Fulton Financial Corporation and Blue Foundry Bancorp received regulatory approvals and set an anticipated merger closing date. Honeywell entered an amended agreement to acquire Johnson Matthey's catalyst technologies business.

Upcoming session watchlist

US S&P/Case-Shiller Home Price YoY (DEC) — consensus 1.5% vs 1.4% prior, Feb 24, 02:00 PM | Tracks US home price inflation and housing market momentum.
FR Business Confidence (FEB) — consensus 104 vs 105 prior, Feb 24, 07:45 AM | Gauges business sentiment and near-term activity in France.
US ADP Employment Change Weekly — vs 10.25K prior, Feb 24, 01:15 PM | Offers a weekly snapshot of private payroll changes.
US Fed Golsbee Speech — Feb 24, 01:00 PM | Provides policy commentary and economic assessment from a Fed official.
US API Crude Oil Stock Change (FEB/20) — vs -0.609M prior, Feb 24, 09:30 PM | Weekly inventory data that informs near-term oil supply and demand.

Key Takeaways

US benchmarks closed lower: the Dow fell 1.69%, the S&P 500 dropped 1.10% and the Nasdaq slid 1.26%.
Defensive sectors outperformed: Consumer Defensive (XLP) +1.32% and Healthcare (XLV) +1.04%; Consumer Discretionary (XLY) lagged -2.33%.
Asia diverged as Hang Seng rallied 2.53% while major European indices mostly fell, including the DAX down 1.06%.
Notable stock moves included ACLX +77.44% and large decliners such as NVO -16.25% and IBM -14.05%.