---
title: "Real estate falls 2.3% as the 10-year yield closes at 5.11%"
url: "https://etf.net/news/real-estate-falls-2-3-as-the-10-year-yield-closes-at-5-11-2026-09-23"
published_at: "2026-09-23T20:54:45.314Z"
updated_at: "2026-09-23T20:54:45.314Z"
byline: "ETF.net Research"
---

# Real estate falls 2.3% as the 10-year yield closes at 5.11%

Wednesday, September 23, 2026: real estate fund VNQ fell 2.3% after S&P Global’s flash composite PMI jumped to 58.4 and the 10-year Treasury yield closed at 5.11%; energy fund XLE rose 1.0%.

By ETF.net Research. Published Sep 23, 2026.

The 10-year Treasury yield closed at **5.11%**, a 15-basis-point rise and its highest since July 2007. It was the biggest one-day jump in more than a year. Federal Reserve Governor Michael S. Barr told a Chicago housing summit that further rate increases are likely, hours after S&P Global’s flash survey of private-sector activity rose to **58.4** from 56.0, the strongest reading since July 2021. [Barr had put further tightening on the table](https://etf.net/news/barr-says-further-fed-rate-increases-are-likely-10-year-yield-at-5-06-2026-09-23) before noon; the close did the rest.

Ten of eleven sector funds fell. The ranking ran from crude to duration.

Chart: Only **energy** finished higher as duration sold off

The S&P 500 fund SPY fell 0.73%. Equal-weight RSP fell 0.68%, so this was not a mega-cap event. The Russell 2000 fund IWM fell **1.80%**.

The utilities fund closed at $39.75, **4 cents** above its 52-week low. Over the past month it is down 7.3%; the real estate fund is down 6.9%. NextEra Energy, 13% of the utilities fund, fell 2.8%. Southern, Duke Energy and Sempra fell with it. Among the five largest holdings, only Constellation Energy rose. The long-dated Treasury fund TLT fell 1.6%, the same duration move in a different wrapper.

The real estate fund’s drop was broader still. Equinix, American Tower, Prologis and Digital Realty, its four largest positions, together explained less than a third of the 2.3% decline. Volume ran at 1.6 times the typical session.

Chart: **VNQ** posted the worst return on the most elevated volume

## Exxon, Chevron and the crude reversal

The U.S. oil fund USO rose 3.3%, reversing five sessions of losses after Iranian President Masoud Pezeshkian vowed not to surrender. Exxon Mobil, Chevron and ConocoPhillips, 48% of the energy fund, rose 1.6%, 1.5% and 2.3% and accounted for 0.81 percentage points of its **1.0%** gain. [The refiners that had been catching the majors this year](https://etf.net/news/energy-etfs-returned-43-this-year-two-refiners-pulled-even-with-the-majors-2026-09-23), Marathon Petroleum and Valero Energy, each slipped 0.3%. Energy had fallen in Monday’s and Tuesday’s sessions; Wednesday was a producer bounce, not a sector-wide catch-up.

## McDonald’s, Alphabet, and the banks

McDonald’s, 4.4% of the consumer discretionary fund, fell 4.8% after Chief Executive Chris Kempczinski told an investor day that high inflation and flat restaurant traffic were likely to persist. Amazon subtracted 0.52 percentage points of the fund’s 1.5% decline. Alphabet’s two share classes subtracted 0.77 percentage points from the communications fund’s 0.88% drop. Meta, the largest holding at 22%, rose 1.0%.

[Financials had already fallen 2.0% on Tuesday](https://etf.net/news/financials-fall-2-on-double-volume-as-copper-lifts-materials-1-6-2026-09-22) on more than double average volume. They dropped another 0.46% Wednesday, with Blackstone down 3.8%. Industrials barely moved: Paychex dropped 8.8% after earnings, but it is 0.7% of that fund.

The only sector fund that rose was reversing an oil slide, not collecting on a five-year high in activity.

Source: etf.net, https://etf.net/news/real-estate-falls-2-3-as-the-10-year-yield-closes-at-5-11-2026-09-23. Please cite the page URL.