Oil price surge and rising Treasury yields push US stocks lower
Higher Brent crude prices and climbing 10-year Treasury yields dragged US equity indexes down on Monday.
US equity markets retreated on Monday, with the S&P 500 down 0.8%, the Dow Jones Industrial Average off 0.7%, and the Nasdaq Composite losing 1% after Brent crude rose about 2.8% to just above $100 a barrel. The rally in oil prices added pressure to inflation concerns, which in turn lifted Treasury yields; the 10-year Treasury yield rose to 5.26% and the 30-year to 5.58%, levels not seen since the mid-2000s. Companies with high fuel costs, including American Airlines and United Airlines, saw their shares fall sharply, and gold miner Newmont dropped 4.4% as gold prices slipped.
Nvidia posted a 2% gain after announcing a large share-buyback program, while MongoDB plunged 18.5% following its CEO's abrupt departure. Overall, the market’s decline reflected the combined impact of higher energy prices and tighter financing conditions.
Why it matters
Rising oil and bond yields are squeezing corporate profits and consumer costs, affecting both markets and everyday expenses.
How this story developed
- Sep 17 Fed’s Unanimous Rate Hike Signals Hawkish Shift, Sparking Market Unease
- Sep 20 The Fed implemented a modest rate increase and a hawkish tone from the new chair.
- Sep 22 Meta's new Muse AI assistant sparked an 11% jump in its stock, lifting other AI-related shares, while oil prices rose and bond yields nudged higher.
- Sep 28 Asian equity markets opened with restraint on Monday as oil prices surged amid lingering US-Iran tensions, while higher bond yields added pressure.
- Sep 28 Oil prices spiked sharply, pushing bond yields higher and prompting mixed moves in Asian equities.
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