A Mixed Finish After a Volatile Week
U.S. stock indexes ended an uneven week with mixed results as elevated bond yields and oil prices weighed on investors. The S&P 500 gained 0.2% but recorded its second consecutive weekly loss. The Dow Jones Industrial Average fell 0.2%, while the Nasdaq composite rose 0.4%.
Pressure from the bond market affected most stocks. The yield on the 10-year Treasury climbed to 5% from 4.94% and remained near its highest level since 2023. Higher yields raise borrowing costs for the government, homebuyers, and companies while reducing the appeal of stocks and other investments.
Fuel Prices Deepen Inflationary Pressure
Inflation remained above 3% by several measures and worsened as the war with Iran pushed oil prices higher. Brent crude approached $110 earlier in the week after trading slightly above $70 in July. It later settled at $103.87 per barrel, down 0.9% for the day.
Gasoline averaged $4.47 per gallon, compared with $3.20 a year earlier. Diesel reached a record $6.45 per gallon, increasing shipping costs for products ranging from groceries to clothing. These fuel increases placed additional pressure on household budgets and corporate expenses.
Companies and International Markets Diverge
Nucor fell 6.3% after forecasting quarterly profit below analysts’ expectations, even though its steel mills business expected improvement. The company could charge higher prices but also faced rising costs. General Motors declined 5.1%, and Qualcomm dropped 5.8%.
Elsewhere, Coinbase Global surged 11.7% and Robinhood Markets gained 9.1%. Berkshire Hathaway edged up 0.1% after Warren Buffett announced that he would leave his position as chairman. He had already stepped down as chief executive.
European markets declined, with both France’s CAC 40 and London’s FTSE 100 losing 1.5%. Asian indexes performed better as South Korea’s Kospi rose 2.7% and Japan’s Nikkei gained 1.4%. The Bank of Japan raised its benchmark rate to a 31-year high after the Federal Reserve increased rates earlier in the week.
References
Choe, S. (2026, September 18). Wall Street drifts lower as bond yields rise and oil prices swing. AP News. https://apnews.com/article/stock-markets-oil-war-inflation-rates-1ff3311788bcc4555d00e283a57289fe