On Monday, U.S. stock markets declined due to rising oil prices and bond yields; the S&P 500 dropped by 0.8%, and the Dow Jones Industrial Average fell 372 points (0.7%). Brent crude oil surged above $100 per barrel, affecting inflation rates and increasing Treasury yields—specifically, the 10-year yield rose to 5.26% from 5.17%. The uncertainty surrounding Iran's Strait of Hormuz has been a key factor in these fluctuations, with President Trump rejecting Iran’s offer to reopen the strait for oil shipments.
Written locally by qwen2.5:14b on 2026-09-28,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
US bond yields surged to near 20-year highs, rising from 4.95% to 5.16% over a week, amid concerns over escalating tensions between Iran and the US, which have driven up oil prices. This increase in bond yields is inversely correlated with stock markets; for instance, the S&P 500 fell by 0.8% while the Nasdaq Composite dropped by 1%, reflecting investor anxiety about higher borrowing costs impacting corporate profits. The spike in bond yields also questions the sustainability of the artificial intelligence investment boom as bonds become more attractive compared to stocks with a lower dividend yield, currently around 1%. Additionally, US President Donald Trump's rejection of Iran’s offer to reopen the Strait of Hormuz has exacerbated fears over sustained high oil prices, contributing further to the instability in financial markets.
Written for “Bond Selloff And Market Volatility” on 2026-10-05,
grounded in this article and the 3 other(s) covering the same event.
Rising oil prices are knocking the U.S. stock market further from its record high on Monday, while building pressure even higher within the U.S. bond market.
asserted
prices → rise → market
The S&P 500 fell 0.8 per cent and gave back most of its gains from last week, which had brought it to the brink of its all-time high.
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which → fall → high
Most of the U.S. stock market sank under the weight of a 2.8 per cent rise for the most actively traded contract in the market for Brent crude oil to US$100.19 per barrel.
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Most → sink → barrel
That overshadowed a gain for Wall Street’s most influential stock, Nvidia, after it announced a historic funneling of cash to its investors through a buyback of its shares.
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it → overshadow → shares
Meanwhile, the Toronto Stock Exchange was in the red by about 0.75 per cent as many companies tied to mining gold, silver and other commodities struggled.
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companies → tie → gold
Oil prices have been yo-yoing on uncertainty about when the war with Iran will allow tankers to flow freely again through the Strait of Hormuz and deliver oil from the Middle East to customers worldwide. The latest turns came after President Donald Trump said over the weekend he’s rejecting an offer from Iran to reopen the Strait of Hormuz and resume talks on its nuclear program.
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he → - → program
“I’d like to make a deal, too,” Trump said Saturday.
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Trump → like → deal
Brent climbed above $101 per barrel Monday morning, before the U.S. stock market opened for trading, but it pared its gains as U.S. officials said mediators were still working with Iran and the United States on a deal to end the fighting and open the strait.
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mediators → climb → strait
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For all its ups and downs, a barrel of Brent remains much higher than the roughly $72 it cost before the United States and Israel attacked Iran in late February.
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States → get → 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.
uncertain
price → help → AAA
Worries about inflation have in turn helped send Treasury yields much higher in the bond market.
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Worries → send → market
That pressures the economy because it makes borrowing money more expensive for everyone, while also undercutting prices for stocks and other investments.
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borrowing → pressure → stocks
The yield on the 10-year Treasury, which is the centerpiece of the bond market, jumped to 5.26 per cent from 5.17 per cent late Friday.
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which → jump → cent
That’s a considerable move for the bond market, and the 10-year yield is back to where it was in 2007, before the financial crisis and Great Recession sent yields toward zero.
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crisis → ’ → zero
The 30-year Treasury yield, which leaped to 5.58 per cent from 5.49 per cent, is back to where it was in 2004.
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it → leap → 2004
On Wall Street, stocks of airlines and other companies with big fuel bills sank because of the rise in oil prices.
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stocks → sink → prices
American Airlines fell 3.8 per cent, and United Airlines lost 3.6 per cent.
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Airlines → fall → cent
Gold miners were also weak after the price of gold sank 3.9 per cent.
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price → sink → gold
Gold has a reputation for helping to protect its investors from high inflation, but its price tends to weaken when yields are rising and causing bonds to pay their investors more in interest.
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bonds → have → interest
Gold struggles to keep up because it pays its investors nothing.
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it → struggle → nothing
Newmont, the Denver-based mining giant, sank 4.4 per cent.
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Newmont → base → ?
One of Wall Street’s bigger losses hit MongoDB, which dropped 18.5 per cent after the database company said its CEO, Chirantan “CJ” Desai, is stepping down immediately to pursue a senior role at Meta Platforms.
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CEO → hit → Platforms
Such losses helped more than offset a two per cent rise for Nvidia.
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losses → help → Nvidia
The chip company said it approved a plan to send up to another $150 billion to its shareholders in a stock buyback plan, bringing the program’s total remaining size to $235 billion.
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it → say → billion
Nvidia has the power to do so after the frenzy around its chips used for artificial-intelligence technology helped it more than double the amount of cash on its books in the first half of its fiscal year.
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it → have → year
The company also on Monday unveiled a new security platform that the chipmaker said can stop artificial intelligence agents from going rogue.
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chipmaker → unveil → agents
AI stocks broadly have come under pressure after leaders of the industry said it needs to slow its development to give safety measures time to catch up.
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it → come → time
In stock markets abroad, European indexes were mixed following weaker performances across much of Asia.
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indexes → follow → Asia
Indexes dropped 2.7 per cent in Seoul and 1.7 per cent in Shanghai for two of the world’s bigger moves.
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Indexes → drop → moves
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