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Financial Markets 09/28 15:44
NEW YORK (AP) -- Yields in
https://apnews.com/article/bonds-rates-yields-wall-street-7d3ce7fdda0fd58afbeaf6
1293810a0c cranked higher Monday and again touched their highest levels in
roughly two decades, which knocked U.S. stocks further from their record high.
The S&P 500 fell 0.8% and gave back much of its
https://apnews.com/article/stocks-markets-oil-bond-us-b3b7a2b6a065f88e7a92fb5837
9d55dd, which had brought it
https://apnews.com/article/stocks-markets-rates-oil-energy-trump-xi-1f1a267bf455
6c01513f506914eb6359 of its
https://apnews.com/article/stock-markets-ai-semiconductors-fed-energy-3a23f22469
cd0e0062f711096906525c. The Dow Jones Industrial Average dropped 347 points, or
0.7%, and the Nasdaq composite sank 0.9%.
Stocks felt pressure as the yield on the 10-year Treasury briefly topped
5.27% before pulling back to 5.23%, up from 5.17% late Friday. It's back to
where it was in 2007, before the financial crisis and Great Recession sent
yields toward zero.
The 30-year Treasury yield rose to 5.55% from 5.49% and is back to where it
was in 2004.
Treasury yields have been rising for a range of reasons, from worries about
inflation to Washington's massive debt load to
https://apnews.com/article/stocks-markets-trump-iran-us-6a3b530d3c1df18029956016
203ae52e despite its many challenges. That pressures the economy because higher
yields make
https://apnews.com/article/mortgage-interest-rate-30year-fb5f426270e80a7fd64264d
489efeeec, while also undercutting prices for stocks and other investments.
Monday's rise in yields followed the latest swings for oil prices, which
have been
https://apnews.com/article/stock-markets-inflation-oil-bonds-economy-caeb42b84b9
f36294b1c6f6eea5b18ba on uncertainty about when the
https://www.google.com/goto?url=CAESUwHrOzAV_9SvtdSAv4XjN6X98PCtvwSTRzgRw1cQF-X1
pGyMb-khkion0hO0Cd1lsQFefT4yZr4HaNdgBovn91y0qd0h6b0uB3OC9bEYQKidXleK will allow
tankers to flow freely again through the
https://www.google.com/goto?url=CAESXwHrOzAVbCAdwqDqBoXHRpdxs7Zx_DZSowTYW3vdpIWk
wLk00sSNr4sokhyExIT7Wc7QFRvqFkuI4q5K4rPlrs_03iS1R_wjYeicRNM7gPMwt0oBll8qUCJiFL8l
0sPC That would allow them deliver oil from the Middle East to
https://apnews.com/article/fuel-crisis-france-bakery-bread-oil-war-b62ee48b4b2c2
ea57a3e52d43be97a07.
The latest turns came after President Donald Trump said over the weekend
https://apnews.com/article/mideast-roundup-iran-saudi-israel-yemen-c529a0a729600
230559354b80c005bad from Iran to
https://apnews.com/article/iran-us-war-negotiations-strait-hormuz-d8b9749fee99a1
1dd77513d326b824b6 and resume talks on its nuclear program.
"I'd like to make a deal, too," Trump said Saturday. "But that deal would
not be acceptable."
The price for Brent crude in the most actively traded part of the oil market
briefly climbed above $101 per barrel Monday morning, but it pared its gains as
U.S. officials said
https://apnews.com/article/iran-trump-negotiations-war-strait-nuclear-871504dbd9
8d9b08b226b9805d8f4606 with Iran and the United States on a deal to end the
fighting and open the strait. It settled at $97.83, up 0.4%.
For all its ups and downs, a barrel of Brent remains much more expensive
than the roughly $72 it cost before the United States and Israel attacked Iran
in late February. That has helped worsen inflation, and the average price for a
gallon of regular gasoline is up to nearly $4.48 from $3.13 a year ago,
according to AAA.
On Wall Street, stocks of
https://apnews.com/article/airlines-airfares-jet-fuel-prices-iran-war-0d5d453efa
28cf7098e57f7f783574dc and other companies with big fuel bills sank because of
the rise in oil prices.
American Airlines fell 2.5%, and United Airlines lost 2.2%.
Gold miners were also weak after the price of gold sank 3.5%. Gold has a
reputation for helping to protect its investors from high inflation, but its
price tends to weaken when rising yields mean bonds are paying investors more
in interest. Gold struggles to keep up because it pays its investors nothing.
Newmont, the Denver-based mining giant, slid 4.4%.
One of Wall Street's bigger losses hit MongoDB, which dropped 18.5% after
the database company said its CEO, Chirantan "CJ" Desai, is stepping down
immediately to pursue a senior role at Meta Platforms.
Such losses more than offset a 1.7% rise for
https://apnews.com/article/nvidia-ai-agent-artificial-intelligence-safety-3c4d7c
1cfde82851c0577d1fa29b8621, Wall Street's most influential stock.
The chip company's stock climbed after it said its board approved a plan to
https://apnews.com/article/nvidia-share-buyback-ai-e695d7024ad68b0defd6fb2fc1aa2
5d7 to its shareholders in a stock buyback plan, bringing the program's total
remaining size to $235 billion.
Nvidia has the power to do so after the
https://apnews.com/article/nvidia-artificial-intelligence-earnings-dc8d556e709b5
0915cca9217a60b1991 used for https://apnews.com/hub/artificial-intelligence
technology helped it more than double the amount of cash on its books in the
first half of its fiscal year. The company also on Monday unveiled a new
security platform that the chipmaker said can stop artificial intelligence
agents from
https://apnews.com/article/ai-openai-anthropic-agents-rogue-hack-2f8a2b9024d4f06
793bcca12f8089d20.
AI stocks have broadly come under pressure after
https://apnews.com/article/anthropic-ai-dario-amodei-d59552edcb27892d8ee4d98a483
97706 its development to give safety measures time to catch up.
All told, the S&P 500 fell 59.72 points to 7,683.69. The Dow Jones
Industrial Average dropped 347.11 to 51,481.51, and the Nasdaq composite sank
248.34 to 26,820.38.
In stock markets abroad, European indexes were mixed following weaker
performances across much of Asia.
Indexes dropped 2.7% in Seoul and 1.7% in Shanghai for two of the world's
bigger moves.
___
AP Business Writers Yuri Kageyama and Michelle Chapman contributed to this
report.
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