Treasury yields push stocks lower
Wall Street moved further from its record high on Monday as yields in the U.S. bond market reached levels not seen in roughly two decades. The S&P 500 fell 0.8%, giving back much of the previous week’s gain. The Dow Jones Industrial Average dropped 347.11 points, or 0.7%, to 51,481.51, while the Nasdaq composite sank 248.34 points, or 0.9%, to 26,820.38.
Pressure came from a sharp rise in Treasury yields. The 10-year yield briefly climbed above 5.27% before settling at 5.23%, up from 5.17% late Friday and near its 2007 level. The 30-year yield rose to 5.55% from 5.49%, returning to territory last seen in 2004. Concerns about inflation, Washington’s debt burden and continued strength in the U.S. economy have all contributed to the increase. Higher yields raise borrowing costs and can reduce the appeal of stocks and other investments.
Oil swings reinforce inflation concerns
Crude prices added to the uncertainty as the war with Iran continued to restrict traffic through the Strait of Hormuz. Brent crude briefly moved above $101 a barrel before settling at $97.83, up 0.4%. That remained far above the roughly $72 price recorded before the United States and Israel attacked Iran in late February. President Donald Trump rejected an Iranian offer to reopen the strait and resume nuclear talks, although mediators continued working toward an agreement.
Rising energy costs have intensified inflation pressure. The average price of regular gasoline reached nearly $4.48 per gallon, compared with $3.13 a year earlier. Companies with large fuel expenses suffered as a result: American Airlines fell 2.5%, and United Airlines lost 2.2%. Gold dropped 3.5% because higher bond yields made interest-paying investments more attractive, while Newmont shares slid 4.4%.
Corporate moves create sharp contrasts
MongoDB recorded one of the session’s steepest losses, falling 18.5% after announcing that chief executive Chirantan “CJ” Desai would leave immediately for a senior role at Meta Platforms. Nvidia moved in the opposite direction and gained 1.7%. Its board authorized another $150 billion for share repurchases, bringing the remaining buyback program to $235 billion. The chipmaker also introduced a security platform designed to prevent artificial intelligence agents from acting outside intended limits.
Outside the United States, European markets finished mixed after weaker trading across much of Asia. Seoul’s index fell 2.7%, and Shanghai declined 1.7%. These moves reflected the wider pressure created by expensive borrowing, volatile energy prices and renewed concern that persistent inflation could keep financial conditions tight.
References
Choe, S. (2026, September 28). Bond yields crank higher and pull US stocks further from their record. AP News. https://apnews.com/article/stock-markets-oil-war-inflation-6b70287210105d208eb0944d589d31f2