Wall Street climbs as oil slides and Treasury yields retreat
U.S. equity indexes rose on Monday, with the S&P 500 gaining 1.5% and approaching its recent record level, the Dow Jones Industrial Average up 0.7%, and the Nasdaq climbing 2.3% to a new high. Brent crude fell more than 3%, bringing prices to around $100 a barrel, while the benchmark 10‑year Treasury yield slipped below 5%. Shares of artificial‑intelligence‑linked companies posted gains, including sharp rises for Intel, a surge that lifted AMD to a $1 trillion valuation, and price‑target‑driven advances for Meta and Accenture after a $2 billion AI investment. Market participants noted that the combination of lower energy prices and softer borrowing costs is influencing equity performance.
How this was covered
- Left-leaning outlets covered this 3h later
- Centrist coverage is the most divided on this story
Why it matters
Movements in oil prices and Treasury yields are shaping equity market performance.
How this story developed
- Sep 11 US 10-year Treasury yield nears 5% as oil prices surge and rate-hike bets rise
- Sep 16 The Federal Reserve announced a quarter-point increase in its benchmark rate, marking the first hike since the previous administration and the first under Chair Kevin Warsh.
- Sep 16 The Fed announced a quarter‑point increase to its key interest rate.
- Sep 17 In its first rate increase since 2023, the Fed lifted the policy rate by a quarter point to a 3.75-4.00% range, with every governor supporting the decision. Market participants interpret the action as a more hawkish stance, prompting concerns for rate-sensitive assets such as small-cap stocks. The lack of clear forward guidance from new chair Kevin Warsh adds to uncertainty, while forecasts point to at least one additional hike this year and a pause in 2027.
- Sep 17 Fed increased the federal funds rate by 25 basis points to a 3.75‑4 percent target range in its first hike since 2023, with a 12‑0 vote.
- Sep 17 The Federal Reserve lifted its policy rate by a quarter point, its first increase in three years.
- Sep 18 Asian equities rose on Friday while the yen slipped, as oil prices fell and investors eyed the Bank of Japan’s upcoming rate hike.
- Sep 18 Fed officials indicated that at least one more 0.25‑point rate increase may be implemented before year‑end.
- Sep 20 The Fed implemented a modest rate increase and a hawkish tone from the new chair.
- Sep 22 Oil prices fell and AI data demand boosted semiconductor stocks, reversing earlier concerns about oil‑driven market pressure.
- Sep 22 AMD’s market value reached $1 trillion.
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