Stocks fall as higher oil prices, Treasury yields weigh
SPY•U.S. stocks fell as higher oil prices and Treasury yields weighed on markets. The Dow lost 0.67%, the S&P 500 fell 0.77% and the Nasdaq dropped 0.92%.
1. Indexes decline
Oil prices and Treasury yields rose as investors weighed uncertainty over an Iran peace deal and the potential effect on Federal Reserve policy. The S&P 500 had its largest daily percentage drop since August 20.
2. Rate outlook shifts
Higher crude and diesel prices fueled inflation concerns, while Fed officials signaled that further rate hikes might be needed if price pressures persist. Markets priced in a 70.3% chance of an increase of at least 25 basis points at the Fed’s October meeting, up from 57.6% a week earlier.
3. Shares diverge
Nvidia gained 1.6% after announcing a $150 billion share repurchase authorization. Boeing fell 6.9% after the FAA delayed certification of its 737 MAX 10 over a software issue, while Tesla dropped 3.9% after J.P. Morgan lowered its price target, citing weak third-quarter deliveries.
