US Stocks Slide as Oil Surge and Treasury Yields Spook Investors; Dow Falls 348 Points

Mumbai, Sept 29: US equities closed sharply lower on Monday as a surge in crude oil prices and a jump in Treasury yields to multi-decade highs weighed heavily on risk assets across Wall Street. The Dow Jones Industrial Average fell 347.52 points, or 0.67%, to close at 51,481.10, while the S&P 500 lost 59.53 points, or 0.77%, to settle at 7,683.88.  

The tech-heavy Nasdaq Composite dropped 248.34 points, or 0.92%, to end at 26,820.38. The session was dominated by a sharp rise in long-dated bond yields, with the 10-year Treasury yield touching levels last seen in 2007, as oil prices climbed on stalled US-Iran negotiations.  

All major benchmarks finished in negative territory as eight of the 11 S&P 500 sectors closed lower. 

Dow Jones Falls 348 Points as Boeing and Salesforce Lead Losses 

The Dow Jones Industrial Average opened at 51,648.48 and closed at 51,481.10, registering a loss of 347.52 points, or 0.67%. The index touched an intraday high of 51,780.50 and a low of 51,409.65 during the session. Losses within the index were led by Boeing, which tumbled 6.89% after a software glitch on its 737 MAX aircraft raised safety concerns.  

Salesforce declined 2.86%, IBM fell 2.14%, and Goldman Sachs dropped 2.02%. On the upside, Procter & Gamble gained 1.92%, Nike rose 1.78%, and NVIDIA advanced 1.66%. The index’s decline came as rising Treasury yields and escalating oil prices triggered a broad sell-off across cyclical and industrial names, overshadowing gains in a handful of defensive and energy-linked constituents. 

S&P 500 Drops 0.77% as Yields Pressure Rate-Sensitive Sectors 

The S&P 500 opened at 7,721.70 and ended at 7,683.88, losing 59.53 points, or 0.77%. During the session, the index reached a high of 7,724.15 and a low of 7,666.60. The sell-off was broad-based, with materials and consumer discretionary among the worst-performing segments. Among prominent decliners, Qualcomm plunged 7.17%, Boeing fell 6.89%, Intel dropped 5.55%, and Meta Platforms declined 4.79%.  

Regeneron Pharmaceuticals lost 4.56%, and ServiceNow shed 4.00%. On the gaining side, Palo Alto Networks jumped 4.63%, Intuitive Surgical rose 2.40%, and Procter & Gamble added 1.92%. The index’s closing performance came as the benchmark 10-year Treasury yield surged above 5.24%, its highest level since 2007, and the 30-year yield climbed to 5.56%, a level last observed in 2004, creating a significant headwind for equity valuations. 

Nasdaq Composite Slips 0.92% as Semiconductor Stocks Retreat 

The Nasdaq Composite opened at 26,935.76 and closed at 26,820.38, marking a loss of 248.34 points, or 0.92%. Its intraday high stood at 26,990.02, while the low was 26,709.69. Technology and growth-oriented shares faced sustained pressure throughout the session, with ARM Holdings plunging 8.70%, Intel tumbling 5.55%, Qualcomm dropping 7.17%, and Micron Technology declining 2.61%. Meta Platforms shed 4.79% and Tesla fell 3.95%.  

However, NVIDIA bucked the trend, rising 1.66% after announcing a $150 billion increase to its share buyback programme, bringing its total authorisation to $235 billion. Palo Alto Networks gained 4.63% and CrowdStrike added 2.82%. The technology-heavy benchmark responded to a sharp rise in long-dated Treasury yields, which particularly pressured growth stocks whose valuations are sensitive to rising discount rates. 

Also Read: What Is the New York Stock Exchange (NYSE)?

Russell 2000 Falls 0.65% as Smaller Stocks Track Broader Decline 

The Russell 2000 opened at 2,828.14 and closed at 2,819.12, losing 18.43 points, or 0.65%. It recorded an intraday high of 2,833.51 and a low of 2,807.60. Movements among smaller-cap companies reflected the broader market weakness, with significant divergences emerging within the index. Kodiak Sciences emerged as the standout gainer, surging 177.96%, while Bloom Energy dropped 8.90% and Credo Technology Group fell 8.68%.  

Modine Manufacturing declined 11.49%, and Carvana lost 7.01%. The small-cap benchmark’s performance was influenced by the same macroeconomic factors weighing on larger peers, as higher Treasury yields and elevated oil prices affected smaller companies with greater sensitivity to borrowing costs and domestic economic conditions. 

S&P 100 Declines 0.83% as Large-Cap Shares Track Yield Surge 

The S&P 100 opened at 3,857.05 and finished at 3,836.20, recording a loss of 31.98 points, or 0.83%. The index traded between 3,829.03 and 3,859.50 during the session, compared with a previous close of 3,868.18. Movements in major large-cap constituents contributed to the daily performance, with Qualcomm declining 7.17%, Boeing falling 6.89%, and Intel dropping 5.55%.  

Meta Platforms lost 4.79% and Salesforce declined 2.86%. NVIDIA rose 1.66% and Procter & Gamble gained 1.92%. The large-cap benchmark’s decline reflected the same dynamics affecting the broader market, as rising long-term interest rates prompted a repricing of equity valuations across the largest US corporations. 

Dow Composite Slips 0.49% as Transport and Utility Averages Diverge 

The Dow Jones Composite Average opened at 16,004.92 and closed at 15,976.19, losing 78.92 points, or 0.49%, after moving between a high of 16,058.28 and a low of 15,931.67. The Dow Jones Transportation Average ended at 19,582.54, compared with an opening level of 19,500.26, representing a gain of 10.32 points, or 0.05%. The Dow Jones Utility Average closed at 1,004.50, declining 5.82 points, or 0.58% from its opening level of 1,010.35.  

Within the utility average, NextEra Energy and Duke Energy traded lower, while the transportation average saw mixed performance. Movements in these constituents reflected the divergent forces at play, with utilities pressured by rising bond yields and transports showing relative resilience despite higher fuel costs. 

Philadelphia Semiconductor Index Falls 1.61% as Chip Stocks Slide 

The Philadelphia Semiconductor Index (SOX) opened at 12,595.14 and closed at 12,465.24, losing 203.69 points, or 1.61%. Its intraday high was 12,665.40, while the low was 12,277.41. Semiconductor-related constituents faced broad selling pressure, with ARM Holdings plunging 8.70%, Qualcomm tumbling 7.17%, Intel dropping 5.55%, and Credo Technology Group falling 8.68%.  

Micron Technology declined 2.61%, and Marvell Technology lost 3.83%. NVIDIA rose 1.66%, providing a partial offset, while ASML gained 1.58% and Applied Materials added 0.36%. The sector benchmark’s decline came amid a broader rotation away from AI-linked hardware stocks, with the SOX closing well below its 52-week high of 14,655.29. 

Also Read: How to invest in US stocks

NYSE Composite Declines 0.64% as Broader Shares Track Market Weakness 

The NYSE Composite Index opened at 23,912.59 and closed at 23,759.35, recording a loss of 153.23 points, or 0.64%. The index traded between a high of 23,912.59 and a low of 23,714.27 during the session. Movements across major market segments contributed to the decline, with energy and financial stocks showing mixed performance while technology and consumer discretionary names faced selling pressure.  

The composite’s performance reflected the broader market environment as rising Treasury yields and elevated oil prices shaped trading across US equity benchmarks. The index ended the session well below its 52-week high of 24,866.75. 

S&P MidCap 400 and SmallCap 600 Fall as Broader Market Weakens 

The S&P MidCap 400 opened at 3,635.94 and closed at 3,622.00, moving 26.57 points, or 0.73% lower, with an intraday range of 3,604.48 to 3,637.42. The S&P SmallCap 600 opened at 1,678.52 and ended at 1,671.70, losing 11.56 points, or 0.69%, after trading between 1,663.35 and 1,680.51.  

The two benchmarks reflected movements among mid- and small-cap shares as the broader market declined amid rising yields and oil prices. Within the mid-cap index, financial and industrial names faced pressure, while select healthcare and consumer staples constituents provided limited support. 

Oil, Yields and Iran Tensions Drive the Session’s Market Direction 

The principal market catalyst was the lack of progress in US-Iran negotiations, which pushed crude oil prices higher and intensified inflation concerns. Brent crude traded at $105.34, up 1.0%, while West Texas Intermediate (WTI) crude stood at $92.85, gaining 0.5%. Earlier in the session, Brent had climbed above $101 per barrel before paring gains on reports that Saudi Arabia had resumed oil exports via its East-West pipeline.  

Treasury yields surged in response, with the 10-year yield climbing to 5.24%, its highest since 2007, and the 30-year yield rising to 5.56%, a level not seen since 2004. The 2-year yield stood at 4.92%. These developments coincided with the day’s broad decline across US equity benchmarks, as higher energy costs and borrowing costs weighed on investor sentiment. 

VIX Jumps 8.47% as Market Volatility Indicator Surges 

The CBOE Volatility Index (VIX) rose 8.47% to 16.13, compared with its previous close of 14.87. The index measures expected volatility in the S&P 500 over the coming 30 days. Its movement during the session coincided with the sharp rise in Treasury yields and oil prices, which prompted increased demand for portfolio protection. The VIX traded between a low of 15.68 and a high of 16.62 during the session, closing well above its 52-week low of 13.38 but significantly below its 52-week high of 35.30. 

S&P 500 Sectors Show Broad Weakness Across Eleven Groups 

Performance across the 11 S&P 500 sectors was broadly negative, with eight groups closing lower and three posting gains. Consumer staples recorded the strongest move at +0.4%, while energy gained 0.63% and health care added 0.11%. Communication services declined 1.66%, materials fell 0.8%, and financials dropped 1.5%. The remaining sectors recorded the following moves: Information Technology -0.9%, Consumer Discretionary -0.7%, Industrials -0.6%, Utilities -0.6%, and Real Estate -0.4%. The sector movements followed the rise in Treasury yields, which particularly pressured rate-sensitive sectors such as utilities and real estate. 

Also Read: US Stock Market Timings 

Biggest Gainers, Losers and Magnificent Seven Performance 

Among the Magnificent Seven, NVIDIA moved +1.66%, Apple declined 0.76%, Microsoft fell 1.29%, Meta Platforms dropped 4.79%, Amazon lost 1.34%, Alphabet declined 0.52%, and Tesla fell 3.95%. NVIDIA was the sole gainer in the group, buoyed by its buyback announcement.  

Across the broader market, top gainers included Kodiak Sciences +177.96%, Palo Alto Networks +4.63%, and Intuitive Surgical +2.40%. Notable losers included MongoDB -18.44%, Gold Fields -12.90%, and Modine Manufacturing -11.49%. These daily movements contributed to the performance of major US equity benchmarks. 

Semiconductor, Financial and Energy Stocks Show Mixed Daily Moves 

Semiconductor stocks were broadly lower, with the Philadelphia Semiconductor Index declining 1.61%. Financial stocks faced pressure, with the KBW Nasdaq Bank Index falling 1.51%, as rising rates raised concerns about funding costs and deposit competition. Energy stocks moved higher alongside crude oil prices, with the S&P 500 Energy Sector gaining 0.63%.  

Chevron rose 0.90% and Exxon Mobil added 1.21%. AI and growth stocks were mostly lower, with the Roundhill Magnificent Seven ETF declining 1.5%, though NVIDIA’s gain provided a partial offset. Movements among relevant constituents contributed to the technology-heavy indices’ performance. 

Economic Data Shows Dallas Fed Index at 9.8 as Markets Assess Release 

The latest economic data showed the Dallas Fed Manufacturing Business Activity Index at 9.8 for September, compared with a previous reading of 11.6 and expectations of 8.2. The release provided the latest information on manufacturing activity in the Texas region during the session.  

Markets also looked ahead to Wednesday’s Personal Consumption Expenditures (PCE) inflation report, the Federal Reserve’s preferred inflation gauge, and Friday’s September jobs report. The University of Michigan consumer sentiment reading showed consumers bracing for 4.6% inflation in the coming year, up from 4% in the prior month. 

Federal Reserve and Treasury Yields Set the Rate Backdrop 

The Federal Reserve remained a key focus as markets assessed the path of monetary policy following the central bank’s 25 basis point rate hike earlier in September. Federal Reserve Governor Lisa Cook said that artificial intelligence and higher oil prices will continue to push up inflation in the coming months, and indicated that further rate hikes would be contingent on economic data.  

The 2-year US Treasury yield stood at 4.92%, while the 5-year yield was 5.07%. The 10-year Treasury yield stood at 5.24%, and the 30-year yield was 5.56%. The yield curve steepened as long-dated yields rose more than short-dated ones, reflecting concerns about inflation and fiscal conditions. 

Crude Oil, Gold and Metals Move With Iran Negotiation Stalemate 

Brent crude traded at $105.34, changing +1.0%, while WTI crude stood at $92.85, moving +0.5%. Gold traded at $4,136.81 per ounce, declining 3.5%, while silver fell 5.22% to $61.42. Copper changed -1.2% to $4.75 per pound, and natural gas dropped 6.1% to $3.00 per million British thermal units.  

The commodity moves followed the lack of progress in US-Iran negotiations, which supported crude prices, while rising Treasury yields and a stronger dollar pressured precious metals. 

Dollar and Major Currencies Move Against Rate Expectations 

The US Dollar Index (DXY) moved +0.22% to 101.19. EUR/USD stood at 1.1383, USD/JPY traded at 157.19, and GBP/USD was at 1.3256. Currency movements followed elevated Treasury yields and expectations of further Federal Reserve rate hikes, which supported demand for the dollar. The euro remained near a two-month low against the dollar, while sterling hovered close to a three-month low. 

Also Read: What Are Fractional Shares? 

Homebuilding Index Falls 3.2% as Mortgage Rates Climb to 7.5% During September 

The S&P 500 Homebuilding Index has declined 3.2% in September as mortgage rates climbed to around 7.5%, pressuring housing affordability and demand. Weak revenue at major builders and rising Treasury yields have added to concerns over the sector. The broader market also fell on Monday, with the Dow Jones Industrial Average down 347.52 points, or 0.67%, the S&P 500 lower by 59.53 points, or 0.77%, and the Nasdaq Composite down 248.34 points, or 0.92%. 

Housing-related retailers have experienced sharper declines. Home Depot shares have fallen 11% this month, while Lowe’s has dropped 8.5%, reflecting weaker spending on renovations and building-related products. The Homebuilding Index’s decline contrasts with the broader S&P 500, which remained broadly flat for September despite Monday’s sell-off. 

Higher borrowing costs have been driven by rising long-term Treasury yields. The 10-year Treasury yield exceeded 5.24%, its highest level since 2007, while the 30-year yield reached 5.56%, a level last seen in 2004. Because mortgage rates generally track long-term Treasury yields, the increase has reduced affordability for prospective homebuyers. 

Weak revenue reported by Lennar and KB Home, alongside elevated construction costs, has further weighed on housing stocks. The S&P 500 Real Estate sector fell 0.4% on Monday, highlighting continued pressure on rate-sensitive industries. 

The housing sector’s September performance reflects investor concerns over the effects of sustained high interest rates on home purchases, construction activity and consumer spending. With monetary policy remaining a key market focus, housing-related equities remain sensitive to changes in Treasury yields and mortgage borrowing costs. 

Bitcoin Falls to $83,300 as Crypto Stocks Retreat Amid Broader Market Sell-Off 

Bitcoin traded around $83,300 on Monday, down from overnight highs near $85,000, as the broader market decline weighed on crypto-linked equities. Shares of Robinhood Markets, Coinbase Global, Mara Holdings, and Circle Internet Group all pulled back during the session, tracking the risk-off sentiment that pressured technology and growth stocks across US indices.  

The cryptocurrency is down just about 5% year-to-date, though it has gained more than 40% in the past three months. Strategy, the largest corporate holder of bitcoin, bought 1,665 bitcoin last week for approximately $143 million, pushing its stockpile to 847,666 coins.  

Spot bitcoin funds attracted $2.4 billion in net flows from September 21 to September 25, pushing year-to-date inflows to over $1 billion. The crypto market’s movements coincided with the broader equity sell-off driven by rising Treasury yields and elevated oil prices. 

The closing session was shaped by stalled US-Iran negotiations, which drove oil prices higher and pushed Treasury yields to multi-decade highs. The major US indices finished lower, with the Dow, S&P 500 and Nasdaq all recording declines. Sector, bond, commodity and currency markets reflected these developments. These figures provide a factual summary of the session and its key market movements. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-industrial-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.nasdaq.com/market-activity/index/comp 

• https://www.nasdaq.com/market-activity/quotes/nasdaq-ndx-index 

• https://www.spglobal.com/spdji/en/indices/equity/sp-100/ 

• https://www.lseg.com/en/ftse-russell/indices/russell-us 

• https://www.nyse.com/index 

• https://www.nyse.com/index 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-transportation-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-utility-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-composite-average/ 

• https://www.nasdaq.com/market-activity/index/sox 
• https://www.cboe.com/tradable_products/vix/