Stocks Pressured as Crude Prices and Bond Yields Soar

The S&P 500 Index ($SPX$)(SPY) falls by -0.51% today, the Dow Jones Industrial Average ($DOWI$)(DIA) is down -0.66%, and the Nasdaq 100 Index ($IUXX$)(QQQ) continues to dusk at -0.76%. December E-mini S&P futures (ESZ26) drop -0.52%, while December E-mini Nasdaq futures (NQZ26) decline 0.81%.

Equity markets tumble as crude oil prices surge alongside a rebound in bond yields, eroding optimism regarding a near-term resolution to the conflict in Iran and the potential reopening of the Strait of Hormuz. Crude prices climb more than +2% today following President Trump’s dismissal of Iran’s most recent proposals for conflict settlement. This rally lifts inflation expectations and pushes global bond yields upward, with the 10-year Treasury Note reaching a 19‑year high of 5.23% and the 10‑year German Bund soaring to a 17‑year high of 3.65%. The increase in interest rates is weighing heavily on chip manufacturers and artificial intelligence enterprises, which are feeling the downward pressure across the broader market.

Join 200K+ Subscribers:

Find out why the midday Barchart Brief newsletter is a must‑read for thousands daily.

On the positive side for equities, the United States and China have outlined plans to reduce tariffs on roughly $30 billion of bilateral imports. The China Commerce Ministry stated today that these reductions will take effect once both sides complete the required procedural steps under their domestic legislation.

November WTI crude oil prices (CLX26) rise over +2% today amid waning hope for an immediate peace breakthrough. President Trump on Saturday rejected Iran’s latest proposal ending the war, and Tehran indicated it will not soften its demands to reopen the Strait of Hormuz. The Wall Street Journal reported that US negotiators are urging Iran to concede on its nuclear program to revive diplomatic efforts and address President Trump’s top priorities. The paper also noted that Mr. Trump anticipates resuming the bombing campaign against Iran after the Thursday, November 3, midterm elections.

Crude prices climbed further after Iran‑backed Houthi militants in Yemen carried out drone and missile strikes against Saudi Arabia over the weekend.

Markets now price a 68% likelihood of a 25‑bp Federal Reserve rate hike at the upcoming FOMC meeting on October 27–28.

Overseas stock performance remains mixed. The Euro Stoxx 50 rises 0.43%, whereas China’s Shanghai Composite touches a 1.75‑month low, closing down 1.67%, and Japan’s Nikkei‑225 drops from a 1.25‑month peak, falling off by 0.73%.

Interest Rates

December 10‑year Treasury Notes (ZNZ6) slide -9 ticks today. The 10‑year T‑note climbs +5.7 basis points to 5.217%, bringing the decade‑long yield to a new 19‑year high of 5.234%. The +2% spike in WTI crude bolsters inflation expectations, depressing Treasure values and pushing yields higher. Yet losses narrow as the equity slump generates safe‑haven inflows into Treasury seats.

European sovereign debt follows suit, with 10‑year German bund yields climbing to a 17‑year high of 3.650% (+3.8 bp) and the 10‑year UK gilt surging to a 1.5‑week high of 5.421% (+4.8 bp). Markets are pricing a 45% chance of an ECB rate hike at the bank’s next gathering on October 29.

U.S. Stock Movers

Semiconductors and AI components suffer setbacks, dragging the broader indices lower. The iShares Semiconductor ETF (SOXX) drops below -1%, ARM Holdings Plc (ARM) falls above -7% to lead Nasdaq 100 losers, and Qualcomm (QCOM) slides past -7%, also heading the S&P 500 decline. Additional downward pressure affects Intel (INTC) and SanDisk (SNDK) by more than -3%, AMD, Marvell Technology (MRVL), Western Digital (WD), Advanced Micro Devices (AMD), Autodesk (ADSK), Microsoft (MSFT), Oracle (ORCL), Workday (WDAY), Palantir Technologies (PLTR), Thomson Reuters (TRI), Datadog (DDOG), and IBM (IBM) each retreating beyond -2% to -1%.

Software sector weakness widens the margin of pull‑back. Atlassian Corp (TEAM) falls over -7%, ServiceNow (NOW) drops by more than -5%, Adobe Systems (ADBE) and Intuit (INTU) each lose over -4%, and Salesforce (CRM) declines by more than -4%, topping the downtown performers. Further head‑turners include Autodesk (ADSK), Nvidia (NVDA) – which jumps plus more than -6% after boosting its share‑repurchase programme by $150 billion – and Kodak (KO) posting a sharp rise after clinical success. Roblox (RBLX) slides beyond -6% following Jefferies’ downgrade to “underhold” with a $38 price target, while Snowflake (SNOW) edges down under forty percent after announcing a $3.5 billion conversion of senior notes maturing in 2029 and 2031.

In stark contrast, Kodiak Sciences (KOD) posts a striking plus one hundred eleven percent gain after reporting that a Phase‑3 study of Zenkuda and tabirafusp‑ted achieved key endpoints in patients with wet age‑related macular degeneration. The company also sees strength from Netease ADRs (NTAS) which edge upward over plus four percent after Morgan Stanley crowns it a top peer selection, citing the forthcoming Ananta gaming launch as a likely growth catalyst for FY 2026.

Highlights of recent earnings (September 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).

On the date of publication,
Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data herein is solely for informational purposes.
For more information, please visit the Barchart Disclosure Policy
here.

Source link