Stocks Finish Near Flat After Sudden Reversals
U.S. stocks ended a volatile Thursday close to where they began after moving repeatedly between gains and losses. The S&P 500 slipped less than 0.1% to 7,704.13, while the Dow Jones Industrial Average lost 161.61 points, or 0.3%, to finish at 51,349.98. The Nasdaq composite gained 3.34 points and closed at 26,939.37.
Pressure from the bond market has slowed the rally that recently brought the S&P 500 near its record high. The yield on the 10-year Treasury rose from 5.11% to 5.20%, returning to a level last seen in 2007. It briefly dropped from almost 5.17% to below 5.13% within about 20 minutes before turning higher again. Elevated yields make borrowing more expensive and can weaken prices for stocks and other investments.
Oil Swings and Economic Strength Lift Yields
Treasury yields continued to follow abrupt changes in oil prices as investors assessed when the war with Iran might allow crude to flow freely from the Middle East. Brent crude moved from $102 to about $99 per barrel within minutes during midday trading. It later recovered and settled at $100.22, an increase of 2.1% from the previous day. Expensive oil can intensify inflation concerns and add pressure to the bond market.
Economic data also supported higher yields. Fewer U.S. workers applied for unemployment benefits during the previous week, reinforcing expectations that the economy remains strong. That resilience could persuade the Federal Reserve that growth can withstand additional rate increases. The central bank raised its main rate last week for the first time in three years, and traders now see a greater than even chance of two more increases before year-end.
Corporate Results Show Uneven Market Pressure
Strong economic activity has helped many U.S. companies continue producing solid profit growth despite concerns about war, inflation, and tariffs. Still, individual results revealed caution. Stitch Fix fell 21.6% even after beating quarterly expectations because it warned that a more difficult consumer environment could slow revenue growth. Darden Restaurants declined 3% after reporting profit that matched analysts’ forecasts.
High yields also weighed on expensive technology shares and increased financing costs for artificial intelligence data centers. Nvidia slipped 0.4% and placed the greatest downward pressure on the S&P 500. Everpure moved in the opposite direction, rising 11.2% after maintaining its financial forecasts and projecting faster revenue growth next year. Overseas markets mostly declined, although Tokyo gained 0.8% while Shanghai fell 1.2%.
References
Choe, S. (2026, September 24). A shaky day for oil prices and the bond market leaves US stocks not far from where they started. AP News. https://apnews.com/article/stock-markets-inflation-oil-bonds-economy-caeb42b84b9f36294b1c6f6eea5b18ba