Rising oil prices, falling technology stocks and reversing bond yields
keep Wall Street unsettled
[October 09, 2026] By
STAN CHOE
NEW YORK (AP) — Some sharp reversals kept financial markets unsteady on
Thursday, as oil prices rose and U.S. stock indexes finished mixed.
The S&P 500 fell 0.5% for a second straight loss after setting its
all-time high. The Dow Jones Industrial Average added 51 points, or
0.1%, and the Nasdaq composite fell 1.3% as technology stocks took
particularly hard hits.
Stocks felt pressure from a 4.1% rise in the price for a barrel of Brent
crude oil, the international standard, to $104.28. It’s been pinballing
between $96 and nearly $110 over the last month on uncertainty about
when the war with Iran will allow the global energy industry to return
to normal.
Brent got to nearly $106 in the morning before President Donald Trump
sent its price veering after saying “productive discussions” are
happening with Iran and that the U.S. military would not attack it
before the upcoming U.S. elections in November. That briefly sent Brent
toward $103 before it eventually turned back upward.
Even sharper swings shook the bond market, where yields have been
jumping worldwide to their highest levels in years or even decades,
which threaten to slow the economy.
The 10-year Treasury yield initially rose with oil prices, going from
5.28% late Wednesday to 5.35% early Thursday morning. But it then fell
all the way back to 5.23%.
It dropped after the U.S. government said that it sold $22 billion in
30-year Treasury bonds at an auction with a high yield of less than
5.62%. That helped bring the 30-year Treasury yield down to 5.60% from
5.73% in the morning, which is a notable move for the bond market.
A day earlier, an auction of 10-year Treasurys also helped bring down
yields. Strong demand there showed investors are still willing to buy
U.S. government debt, even though their prices have fallen sharply this
year because of worries about high inflation, big government debt loads
and other factors.
“Higher U.S. Treasury yields are starting to create their own demand,
buyers are showing up for the right price,” said Tony Miano, global
investment strategy analyst at Wells Fargo Investment Institute.
On Wall Street, the ease in Treasury yields helped the majority of U.S.
stocks rise, including two out of every three in the S&P 500 index.
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An entrance to the New York Stock Exchange is shown on June 26,
2024, in New York. (AP Photo/Peter Morgan, File)
 PepsiCo climbed 3.7% after the snack
and drink company reported stronger profit and revenue for the
latest quarter than analysts expected, thanks in part to strength
outside of North America.
But drops for several influential technology stocks overshadowed
such gains.
Nvidia, the chip company that’s ridden the tidal wave of demand
created by artificial-intelligence technology, fell 2.9%. Because
it’s the largest stock by value on Wall Street, it was the heaviest
weight on the S&P 500 even though other stocks had larger losses.
That included drops for other AI-related stocks, including
Broadcom’s 4.3% fall and Micron Technology’s 4.8% slide.
The losses came even though a bellwether for the chip industry,
Taiwan Semiconductor Manufacturing Co., reported growth for
September that suggested its revenue for the latest quarter was
strong enough to top analysts’ expectations. TSMC’s stock that
trades in the United States fell 3%.
AI stocks are under heavy pressure to report big growth to justify
how high their stock prices have soared in recent years because of
the AI frenzy.
All told, the S&P 500 fell 36.41 points to 7,765.36. The Dow Jones
Industrial Average added 51.77 to 51,231.64, and the Nasdaq
composite slid 345.35 to 27,193.34.
In South Korea’s stock market, Samsung Electronics dropped 2.4% to
help drag the Kospi index down 2.6%. The tech giant said its
operating profit for the latest quarter likely soared to 107.4
trillion Korean won (roughly $80 billion) from 12.17 trillion won a
year earlier, but that wasn’t enough to satisfy investors.
In other stock markets abroad, indexes fell across much of the rest
of Asia and Europe.
___
AP Business Writers Chan Ho-him and Michelle Chapman contributed to
this report.
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