Business

US stocks: US market falls as higher oil prices, Treasury yields weigh

By Sohail Khan 29 September 2026, 1:41 am

Benchmarks
Nifty22,780.25-360.25

FEATURED FUNDS★★★★★

Motilal Oswal Midcap Fund Direct-Growth

5Y Return
20.4 %

Invest Now

Enter search text:

Business News›Markets›US Stocks›News›US stocks: US market falls as higher oil prices, Treasury yields weigh

Read Today's Paper

US stocks: US market falls as higher oil prices, Treasury yields weigh
Synopsis

US stocks declined on concerns over rising oil prices and higher Treasury yields affecting the market. Investors are cautious due to uncertainty surrounding a potential Iran war peace deal negotiations. Federal Reserve officials hinted at possible interest rate hikes if inflation continues to rise significantly. Nvidia shares surged after announcing a record $150 billion share buyback, while Tesla shares dropped after a lowered price target.

US stocks fell on Monday as oil prices and Treasury yields increased, with investors weighing uncertainty over the prospects for an Iran war peace deal and the impact on the Federal Reserve's rate path.

Crude prices had jumped after US President Donald Trump rejected a peace deal from Iran but pared gains on expectations that Qatari mediators would hold talks with the two countries to find a possible deal.

After retreating from highs at the start of the month, oil prices have accelerated higher in recent days as hopes that a peace deal may be on the horizon have diminished.

The rising prices of crude and diesel fuel have fanned inflation worries and pushed US Treasury yields higher, along with comments from Fed officials indicating that more rate hikes might be needed if price pressures fail to moderate after the central bank raised interest rates by 25 basis points earlier this month.

"Iran is driving oil prices, and oil prices are driving inflation, and inflation is driving interest rates," said Jack Ablin, chief investment strategist and founding partner at Cresset Capital Management in Chicago. "We're getting to a point now where interest rates are looking pretty attractive relative to equities, which is really the first time in close to 20 years, so that's something that we're certainly paying attention to."

"It's less of an earnings story right now than it is a valuation story," he said. "When you get an asset class that has been fighting with one arm tied behind its back for 20 years, now all of a sudden it's looking pretty competitive."

According to preliminary data, the S&P 500 lost 59.00 points, or 0.76%, to end at 7,684.41 points, while the Nasdaq Composite lost 246.62 points, or 0.91%, to 26,822.09. The Dow Jones Industrial Average fell 343.78 points, or 0.66%, to 51,484.84.

Boeing shares tumbled after Federal Aviation Administration Administrator Bryan Bedford said that software problems with the planemaker's 737 MAX will delay certification of the largest variant, the MAX 10, until the agency is "satisfied that we don't have an issue here."

Helping to curb declines was a gain in Nvidia shares after the chip giant announced a $150 billion share repurchase authorization, the biggest-ever company share buyback.

Iran announced a peace proposal at last week's United Nations General Assembly in New York, saying it had been relayed to the United States through Qatari mediators. While Trump said on Saturday he had rejected the offer, he told Axios on Sunday that he expected US negotiators to continue talks this week.

Federal Reserve Governor Lisa Cook said on Monday she expects continued inflationary pressure in coming months stemming from AI-related demand and higher oil prices, though she stopped short of saying more interest rate hikes will be needed.

Expectations for a rate hike from the Fed at its October meeting have climbed in recent days, in part due to economic data indicating the economy was growing at a solid pace. Markets are currently pricing in a 70.3% chance for an increase of at least 25 basis points at the central bank's meeting next month, up from 57.6% a week ago and 17.7% a month earlier, according to CME FedWatch.

Several key economic releases are due this week, which could help shape the path of Fed policy, including a reading on inflation and the labor market, culminating in Friday's government payrolls report.

Tesla shares slumped after brokerage J.P.Morgan lowered its price target on the stock, citing weak deliveries in the third quarter.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

…moreless

(You can now subscribe to our ETMarkets WhatsApp channel)

Read More News on
US stocksTreasury yieldsBoeing MAX certification delayFederal Reserve rate hikeseconomic datafederal reserveNvidia share repurchaseIran peace dealoil pricesinflation fears

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

…moreless

Enter search text:

BrowseCompanies:
ABCDEFGHIJKLMNOPQRSTUVWXYZ
123456789

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year