The S&P 500 Index ($SPX) (SPY) fell 0.92% today, the Dow Jones Industrial Average ($DOWI) (DIA) declined 0.75%, and the Nasdaq 100 Index ($IUXX) (QQQ) dropped 1.55%. December E-mini S&P futures (ESZ26) lost 0.90%, and December E-mini Nasdaq futures (NQZ26) fell 1.47%.
Equity indexes came under pressure as rising crude oil prices stoked inflation concerns and pushed bond yields higher. Oil gained over 2% today amid fading hopes for an imminent breakthrough in Iran peace talks following President Trump’s rejection of Iran’s latest proposals. The oil surge lifted inflation expectations and drove global bond yields upward, with the 10-year U.S. Treasury yield reaching a 19-year high of 5.27% and the 10-year German Bund yield climbing to a 17-year high of 3.65%. The jump in yields hit chipmakers and AI stocks hardest, leading the broader market lower.
On the positive side, the U.S. and China outlined a plan to reduce tariffs on roughly $30 billion of imports each. China’s Commerce Ministry said the cuts would take effect once both sides complete required domestic procedures. U.S. economic data also supported stocks, as the September Dallas Fed manufacturing survey came in at -1.8 versus expectations of -7.8.
November WTI crude oil (CLX26) rose over 2% on dwindling hopes for a peace deal with Iran. President Trump rejected Iran’s latest proposal over the weekend, and Iran refused to soften its demands on reopening the Strait of Hormuz. The Wall Street Journal reported U.S. negotiators are pushing Iran to concede on its nuclear program to satisfy Trump. The newspaper also noted Trump expects to resume bombing campaigns against Iran after the November 3 midterm elections. Crude prices also climbed after Iran-backed Houthi militants attacked Saudi Arabia with drones and missiles over the weekend.
Markets are pricing in a 68% chance of a 25 basis point Fed rate hike at the October 27–28 FOMC meeting.
Overseas markets were mixed. The Euro Stoxx 50 rose 0.57%, China’s Shanghai Composite fell to a 1.75-month low down 1.67%, and Japan’s Nikkei-225 dropped 0.73% from a 1.25-month high.
Interest Rates
December 10-year T-notes (ZNZ6) lost 17 ticks. The 10-year yield rose 9.7 bp to 5.257%, hitting a 19-year nearest-futures low in T-note prices. The 2% WTI jump strengthened inflation expectations, pressuring T-note prices upward in yield. However, safe-haven demand from the equity selloff limited T-note losses.
European government bond yields moved higher. The 10-year German Bund yield reached a 17-year high of 3.650%, up 4.1 bp to 3.642%. The 10-year UK gilt yield rose to a 1.5-week high of 5.421%, up 5.4 bp to 5.420%.
ECB President Christine Lagarde sounded dovish, stating: “While growth has been resilient, since the last ECB meeting, long-term interest rates have risen notably, which will slow growth and reduce pass-through by more than projected in our September exercise.”
Markets are pricing a 37% chance of a 25 bp ECB rate hike at the October 29 meeting.
US Stock Movers
Chipmakers and AI stocks sold off alongside rising Treasury yields. The iShares Semiconductor ETF (SOXX) dropped over 3%. ARM Holdings (ARM) fell more than 8%, leading Nasdaq 100 losers, while Intel (INTC) and Qualcomm (QCOM) lost over 6%. SanDisk (SNDK) and AMD declined more than 5%, Marvell Technology (MRVL) over 4%, and Micron (MU), Seagate (STX), and Western Digital (WDC) more than 3%. Applied Materials (AMAT), Lam Research (LRCX), and KLA (KLAC) fell more than 2%.
Mining stocks slipped as gold and silver hit 1.75-month lows. Anglogold Ashanti (AU) dropped over 6%, Coeur Mining (CDE) and Hecla Mining (HL) more than 5%, Newmont (NEM) and Barrick (B) over 4%, and Freeport-McMoRan (FCX) and Southern Copper (SCCO) more than 1%.
Software stocks weighed on the broader market. Atlassian (TEAM) fell over 4%, ServiceNow (NOW) and Oracle (ORCL) more than 3%, Adobe (ADBE), Intuit (INTU), and IBM (IBM) over 2%, and Salesforce (CRM) lost more than 4% to lead Dow losers. Autodesk (ADSK) and Microsoft (MSFT) declined more than 1%.
Bloom Energy (BE) plunged over 9% after Oracle issued a force majeure notice to a New Mexico data center developer, citing potential payment delays if the project stalls.
Roblox (RBLX) fell over 7% after Jefferies downgraded it to underperform from hold with a $38 price target.
Boeing (BA) dropped over 4% on a complaint alleging federal law violations related to retaliation against a contract compliance expert who raised aircraft safety and worker health concerns.
UiPath (PATH) fell more than 3% after D.A. Davidson downgraded it to underperform from neutral with a $10 price target.
Snowflake (SNOW) declined more than 2% after announcing plans to offer $3.5 billion in convertible senior notes due 2029 and 2031.
Kodiak Sciences (KOD) surged over 142% after a Phase-3 study of Zenkuda and tabirafusp-ted met key endpoints in wet age-related macular degeneration patients.
Netease ADRs (NTES) rose over 5% after Morgan Stanley named it a top peer pick, citing expectations that its new Ananta game becomes a blockbuster launch and core growth driver.
Nvidia (NVDA) gained over 2% to lead Dow Jones gainers after boosting its share buyback program by $150 billion.
Earnings Reports (9/28/2026)
IDT Corp (IDT), Jefferies Financial Group Inc (JEF), Liberty Live Holdings Inc (LLYVA), ReposiTrak Inc (TRAK), SR Bancorp Inc (SRBK), Vail Resorts Inc (MTN).