Oil Prices Interrupt Wall Street’s Momentum
U.S. stocks moved slightly lower while remaining close to their record levels. The S&P 500 slipped 0.1% and stood 0.5% below its previous high. The Dow Jones Industrial Average lost 107 points, while the Nasdaq composite declined 0.3% from its own record.
Major indexes faced renewed pressure after Brent crude rose 1.3% to $100.55 per barrel. The increase ended a weeklong decline that began after Brent approached $110. Although prices had eased, crude remained far above the roughly $72 level recorded before the war with Iran.
Higher Yields Increase Economic Pressure
Oil’s rebound contributed to another rise in bond yields. The yield on the 10-year Treasury climbed to 4.99% from 4.96% late Tuesday. It had exceeded 5% the previous week for the first time since 2023 amid concerns about oil, federal debt, and other risks.
Higher yields increase borrowing costs throughout the economy and have made mortgages more expensive. KB Home reported quarterly profit above analysts’ expectations, but its shares still fell 1%. The homebuilder said potential buyers had become more cautious as housing conditions weakened and broader uncertainty persisted.
Corporate Results and Global Markets
General Mills also exceeded profit expectations, even though higher costs reduced the amount it earned from each dollar of revenue. Its shares dropped 1.2% after the company forecast slower growth and left its full-year profit outlook unchanged. Consumers remain discouraged by rising expenses for fuel, groceries, and other necessities.
Overseas markets declined across much of Europe and Asia. Hong Kong fell 1%, while Shanghai lost 0.4% before Chinese President Xi Jinping began a state visit to Washington. Xi and President Donald Trump were expected to seek greater stability despite continuing disputes involving artificial intelligence, trade, Iran, and Taiwan.
References
Choe, S. (2026, September 23). US stocks drift after oil prices halt their weeklong drop. AP News. https://apnews.com/article/stocks-markets-trump-iran-us-6a3b530d3c1df18029956016203ae52e