What Happened?

A number of stocks fell in the afternoon session after the 10-year Treasury yield jumped to 5.14%, reaching levels last seen in 2007 and raising borrowing costs across the economy. U.S. stocks fell early Thursday, according to the Associated Press, as surging Treasury yields and rebounding energy prices weighed on financial markets. 

A Treasury yield is the return investors earn for lending money to the U.S. government. The 10-year yield is closely watched because it serves as a benchmark for many other borrowing costs, including mortgages and corporate loans. When it rises, it becomes more expensive for households and businesses to borrow, which can slow spending and investment. Higher yields can also make stocks look less attractive. When investors can earn a relatively safe return of more than 5% from government bonds, some may choose to move money out of riskier assets such as equities. 

Companies that depend on borrowing to fund growth, or whose value is based heavily on expected future profits, often feel this pressure most. Rebounding energy prices added to the strain. Higher fuel costs can raise expenses for businesses and consumers and may keep inflation elevated, which could keep upward pressure on interest rates. Taken together, the jump in yields to their highest level in roughly two decades and the rise in energy prices created a difficult backdrop for stocks across the sector, with many companies moving lower together.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Specialty Equipment Distributors company Custom Truck One Source (NYSE: CTOS) fell 4.3%. Is now the time to buy Custom Truck One Source? Access our full analysis report here, it’s free.
• Construction Machinery company Terex (NYSE: TEX) fell 4.3%. Is now the time to buy Terex? Access our full analysis report here, it’s free.
• Water Infrastructure company Xylem (NYSE: XYL) fell 5.3%. Is now the time to buy Xylem? Access our full analysis report here, it’s free.
• Waste Management company Onterris (NYSE: ONT) fell 2.9%. Is now the time to buy Onterris? Access our full analysis report here, it’s free.
• Heavy Transportation Equipment company Oshkosh (NYSE: OSK) fell 5.4%. Is now the time to buy Oshkosh? Access our full analysis report here, it’s free.

Zooming In On Oshkosh (OSK)

Oshkosh’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 11 months ago when the stock dropped 5.7% on the news that the company reported disappointing third-quarter results, missing revenue expectations and lowering its full-year guidance for both sales and earnings. While the company's earnings per share for the quarter were slightly ahead of forecasts, its revenue of $2.69 billion fell 1.9% from the same period last year and came in below what analysts had predicted. The company also reduced its full-year sales forecast to $10.35 billion at the midpoint, down from its prior estimate of $10.6 billion. 

Similarly, the outlook for adjusted earnings per share was also lowered. This downward revision in the company's outlook signaled to investors that challenges were expected to continue.

Oshkosh is down 1.6% since the beginning of the year, and at $130.07 per share, it is trading 26.9% below its 52-week high of $177.94 from February 2026. Despite the year-to-date decline, investors who bought $1,000 worth of Oshkosh’s shares 5 years ago would now be looking at an investment worth $1,230.

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