Sept. 21 (UPI) — Stock prices are on the rise on Monday as crude oil prices dip and U.S. Treasury yields slip.
The S&P 500 was up 0.6% early on Monday, the Nasdaq Composite climbed 0.9% and the Dow Jones Industrial Average bumped up 0.3%. This followed a 1.7% drop in the Dow last week.
A fall in oil prices coincided with Monday’s stock market gains. The price of Brent crude oil, the international benchmark, fell by 3% per barrel, as did West Texas Intermediate crude, the U.S. benchmark. U.S. crude oil futures are trading above $96 per barrel while Brent crude remains above the $100 per barrel mark.
Despite the change in direction on oil prices, tension in the Middle East remains. The Houthis, a Yemeni militia group supported by Iran, said it launched missile and drone attacks on Saudi Arabia on Saturday. The Houthis have expanded their control over the Red Sea in recent weeks, adding pressure to another chokepoint in the Middle East oil trade as the Strait of Hormuz remains under constant threat.
The U.S. State Department placed a travel alert for the Middle East, including Saudi Arabia, warning that travel is not advised due to risks of Iranian drone and missile attacks.
President Donald Trump has renewed his willingness to discuss the war with Iranian President Masoud Pezeshkian. He told Fox News that he would be willing to meet with the Iranian president during the U.N. General Assembly in New York City later this week.
A decline in 10-year Treasury note yields was also a welcomed sign to start the week. Yields on 10-year Treasury notes, an indicator of borrowing costs, fell by three basis points, or 0.03%, to 4.963%.
Monday’s market developments also followed the Federal Reserve raising benchmark interest rates for the first time in three years last week. The central bank raised the benchmark interest rates to the 3.75% to 4% range after holding them from 3.5% to 3.75% since 2023.
Source: U.S. News
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