Lower Oil Prices Help Stocks Recover
A decline in oil prices eased some of the pressure on Wall Street and helped U.S. stocks complete their first winning week in three. The S&P 500 rose 0.5%, ending a three-day losing streak and finishing within 0.7% of its record high. The Dow Jones Industrial Average gained 478.64 points, or 0.9%, while the Nasdaq composite increased 0.5%.
Brent crude fell 2.8% to $97.44 per barrel as investors weighed whether the war with Iran would allow oil shipments from the Middle East to move more freely. Hopes that the Strait of Hormuz could fully reopen to tankers have pushed prices lower, while renewed doubts have sent them higher. Friday’s retreat in crude ultimately gave stocks room to strengthen.
Inflation Concerns Keep Bond Markets Unsettled
Trading remained volatile after a University of Michigan report showed that consumers expect inflation of 4.6% during the coming year, up from 4% a month earlier. Overall consumer sentiment was better than economists had predicted, although it fell to its lowest level in four months. The higher inflation outlook raised concern that households could buy sooner to avoid future price increases, potentially encouraging sellers to charge more.
Following the report, the 10-year Treasury yield briefly climbed to 5.22%, near its highest level since 2007, before falling back to 5.15% as oil prices declined. The yield stood at 3.97% before the war with Iran began. Elevated yields make borrowing more expensive, slow economic activity, and reduce the appeal of stocks and other investments. Similar increases abroad have also unsettled financial markets.
Company Results Provide Additional Support
Strong corporate developments also helped the market. Akamai Technologies gained 3.2% after announcing an $11.6 billion multiyear agreement with Anthropic, the company behind the Claude artificial intelligence chatbot. Costco Wholesale rose 2.9% after reporting quarterly profit that exceeded analysts’ expectations. Solid earnings have allowed stocks to remain resilient despite worries about inflation, energy costs, and interest rates.
At the closing bell, the S&P 500 reached 7,743.41, the Dow finished at 51,828.62, and the Nasdaq ended at 27,068.72. Results outside the United States were mixed. Japan’s Nikkei 225 advanced 1.3%, Hong Kong’s Hang Seng declined 1%, and European indexes moved in different directions, reflecting the uneven effect of higher global yields and changing oil prices.
References
Choe, S. (2026, September 25). A reprieve from rising oil prices helps US stocks finish the week higher. AP News. https://apnews.com/article/stocks-markets-oil-bond-us-b3b7a2b6a065f88e7a92fb58379d55dd