16 hrs ago
US Stocks Fall as Yields, Oil and Dollar Rise
US stocks had a difficult start to the week.
The Dow Jones, S&P 500, and Nasdaq all fell.
Investors were worried because government borrowing costs, oil prices, and the US dollar were rising.
These three pressures were called a “three-headed monster.”
Higher interest rates can make it harder for companies to grow.
Oil prices reached about $108 per barrel before falling back near $106.
Stocks briefly recovered after reports that Donald Trump might offer Iran some financial concessions.
They later fell again, while Michael Burry warned that some AI-related stocks could be overvalued.
The Dow Jones fell 350 points on Monday, while the S&P 500 and Nasdaq Composite each lost less than 1%.
The S&P 500 and Nasdaq 100 closed at their lowest levels in 10 sessions.
US Treasury yields climbed, with the 10-year yield reaching 5.25%, a 19-year high.
Oil prices briefly reached $108 a barrel before retreating toward $106 after pipeline and Iran-related developments.
Markets are pricing in at least three Federal Reserve rate hikes over the next 12 months, while Michael Burry warned that the AI bubble could burst.
- Who
- US stock-market investors, Federal Reserve policymakers, Donald Trump, and investors in AI-related companies were central to the report.
- What
- US benchmark stock indices fell as bond yields, oil prices, and the US dollar rose; markets also assessed possible Federal Reserve rate hikes and warnings about an AI bubble.
- Where
- US financial markets, including Wall Street; oil developments also involved the Yanbu port and an East-West pipeline.
- When
- Monday, September 28; additional US consumer-confidence and JOLTS job-opening data were due later that day.
- Why
- Higher bond yields, rising oil prices, and a stronger US dollar weighed on sentiment, while markets also considered possible rate hikes and concerns about AI-stock valuations.
Key facts
- Dow Jones
- Lost 350 points.
- S&P 500
- Fell 0.8% and ended at its lowest level in 10 sessions.
- Nasdaq Composite
- Fell 0.9%.
- Nasdaq 100
- Fell 1.1% and reached its lowest level in 10 sessions.
- 10-year Treasury yield
- Reached 5.25%, a new 19-year high.
- Oil price
- Touched $108 a barrel before retreating toward $106.
- Expected Fed moves
- Swap markets priced in at least three 25-basis-point rate hikes over the next 12 months, with a possible fourth.
Sources
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