Wall Street drifts lower as bond yields rise and oil prices swing
[September 19, 2026] By
STAN CHOE
NEW YORK (AP) — Wall Street capped an up -and- down week Friday with a
mixed finish for U.S. stock indexes, as elevated bond yields and oil
prices weighed on the market.
The S&P 500 inched 0.2% higher after drifting between modest gains and
losses for much of the day. The benchmark index also posted its second
straight weekly loss.
The Dow Jones Industrial Average slipped 0.2%, and the Nasdaq composite
added 0.4%.
The majority of stocks on Wall Street fell, and helping to weaken them
was rising pressure from the bond market. The yield on the 10-year
Treasury climbed to 5% from 4.94% late Thursday after it topped the 5%
level early this week for the first time since 2023.
Higher yields slow the overall economy by making it more expensive for
everyone to borrow money, from the U.S. government to people looking to
buy houses to businesses wanting to build AI data centers. They also
tend to undercut prices for stocks and other investments.
Yields have been climbing in a long march since the COVID pandemic
knocked them nearly to zero in 2020. The ascent has accelerated recently
because inflation has remained stubbornly high for years.
Inflation is well above 3% by several measures. It worsened due to
higher oil prices caused by the war with Iran.
The price for a barrel of Brent crude, the international standard, got
to nearly $110 early this week, up from a little over $70 in July. It
has been seesawing since.
It briefly dropped below $102 in overnight trading before erasing much
of the loss and settling at $103.87, down 0.9% from the day before.
Rising oil prices have pushed gasoline prices to $4.47 per gallon, up
from $3.20 per gallon a year ago, according to AAA. That is tightening
the squeeze on household budgets. Diesel prices are at a record $6.45
per gallon and that has a more direct impact on shipping costs for
everything from groceries to clothing.
High inflation has been raising expenses for everyone, and more
companies are giving details about how much.
Steel maker Nucor said late Thursday that it expects to report an
increase in profit from its steel mills business in the third quarter
from the second because it’s able to charge higher prices. But it’s also
having to absorb higher costs. It gave a forecast for overall profit in
the third quarter that fell short of analysts’ expectations, and its
stock sank 6.3%.
Berkshire Hathaway edged up 0.1% after famed investor Warren Buffett
said he’s giving up his role as chairman of the company. Buffett already
gave up his role as CEO of the company, where he built a reputation for
buying stocks at relatively cheap prices and being patient with his
investments.
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Christopher Lagana works on the floor at the New York Stock Exchange
in New York, Monday, Sept. 14, 2026. (AP Photo/Seth Wenig)
 Elsewhere on Wall Street, General
Motors fell 5.1% and Qualcomm dropped 5.8%.
Among stocks that gained ground were Coinbase Global, which climbed
11.7% for the biggest gain among S&P 500 stocks, and Robinhood
Markets, which climbed 9.1%.
All told, the S&P 500 rose 12.74 points to 7,650.50. The Dow dropped
95.40 points to 51,682.64, and the Nasdaq added 104.25 points to
26,552.55.
In stock markets abroad, indexes slumped across Europe, including
drops of 1.5% for the CAC 40 in Paris and 1.5% for London’s FTSE
100.
Asian indexes did better. South Korea’s Kospi jumped 2.7%, and
Japan’s Nikkei rose 1.4%.
The Bank of Japan raised its benchmark interest rate in a widely
expected move, up to its highest level in 31 years. It followed the
Federal Reserve, which raised its federal funds rate earlier this
week for the first time in three years in efforts to rein in high
inflation.
“With consumer spending resilient, the AI buildout continuing, and
the labor market solid, the Fed was running out of reasons to stay
on the sidelines after more than five years of above-target
inflation,” said Angelo Kourkafas, senior global strategist,
investment strategy, at Edward Jones.
The Fed’s move could keep upward pressure on Treasury yields,
particularly because officials suggested they may need to hike the
federal funds rate again this year. But it also helped strengthen
faith that the Fed would do what’s necessary to get inflation back
to its 2% target. That’s even if it causes pain for the economy in
the short term and upsets President Donald Trump, who has been
calling for lower interest rates.
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AP Business Writer Yuri Kageyama contributed to this report.
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