By William Collins, consultant in stock markets – Eurasia Business News, September 25, 2026. Article no 3185
U.S. stocks finished higher on Friday, September 25, as investors looked past a week marked by surging Treasury yields, sharp oil-price swings and uncertainty over the Middle East conflict. The Dow Jones Industrial Average snapped a three-session losing streak, while the S&P 500 and Nasdaq Composite also gained as falling crude prices eased some immediate inflation fears.
The rally offered Wall Street a measure of relief after the 10-year Treasury yield moved above 5.2% during the week, its highest level since 2007. High yields remain a serious headwind for stocks because they raise borrowing costs and make fixed-income investments more competitive with equities. But Friday’s oil retreat helped investors look through the near-term pressure.
Dow Leads Friday’s Stock-Market Gains
The Dow Jones Industrial Average advanced 478.64 points, or 0.93%, to close at 51,828.62. The S&P 500 gained 39.28 points, or 0.51%, ending at 7,743.41. The Nasdaq Composite rose 129.34 points, or 0.48%, to 27,068.72.
| U.S. market index | September 25 close | Daily performance |
|---|---|---|
| Dow Jones Industrial Average | 51,828.62 | +478.64 points, or +0.93% |
| S&P 500 | 7,743.41 | +39.28 points, or +0.51% |
| Nasdaq Composite | 27,068.72 | +129.34 points, or +0.48% |
| Russell 2000 | 2,837.55 | +1.98 points, or +0.07% |
The Dow’s performance was especially notable because it recovered after three consecutive daily declines and still finished the week higher. The more modest gains in the Nasdaq and S&P 500 showed that investors remained selective: technology shares benefited from the relief in oil and bond markets, but high valuations and persistent rate concerns limited the broader advance.
Markets also assessed fresh U.S. economic data. Durable-goods orders were unchanged in August following a 0.9% increase in July. However, core capital-goods orders excluding aircraft climbed 1.6%, well above expectations, suggesting that business investment remained resilient, particularly in areas tied to artificial intelligence and data-center infrastructure.
Oil Prices Drop as Hormuz Talks Raise Hopes
Oil prices fell after reports that U.S. and Iranian negotiators were exploring a phased agreement that could reopen the Strait of Hormuz. The proposal reportedly involves Tehran allowing commercial shipping to resume while Washington considers easing its economic blockade of Iran.
Brent crude settled at $104.32 per barrel, down 2.1%. U.S. West Texas Intermediate crude ended at $92.41 per barrel, down 2.3%.
The decline helped relieve some of the inflation anxiety that has dominated markets in recent weeks. Brent had traded above $109 earlier in September as attacks on energy infrastructure and risks to Gulf shipping routes raised fears of a significant global supply disruption.
However, crude remains historically elevated, and the oil market remains vulnerable to renewed tension. Iran’s nuclear stance, Houthi attacks against Saudi Arabia and uncertainty around the safety of tanker traffic continue to support a geopolitical risk premium.
Treasury Yields Remain the Core Challenge
Despite Friday’s equity rebound, the 10-year Treasury yield remained near 5.2%, its highest area since 2007. Fed-funds futures indicated about a 68.6% probability that the Federal Reserve would raise rates again at its October meeting.
The yield surge reflects investor concern about persistent inflation, stronger-than-expected economic data, heavy U.S. government borrowing and the possibility of additional Fed tightening. The pressure was most visible in rate-sensitive sectors such as utilities, real estate and smaller companies.
Utilities have been hit particularly hard. The Utilities Select Sector SPDR Fund, known as XLU, has fallen nearly 20% from its early-year peak. Its 14-day Relative Strength Index fell to around 21, a three-year low and a deeply oversold reading by technical-analysis standards. A reading below 30 is conventionally viewed as oversold.
Utilities often behave like long-duration bonds because their appeal rests on relatively stable dividends. When Treasury yields rise sharply, investors can obtain more income from government bonds, reducing the attractiveness of utility shares. Higher interest rates also increase utilities’ financing costs for power grids, renewables and other capital-intensive projects.
Gold Price on September 25
Gold rose modestly late Friday after a volatile session. Spot gold traded near $4,289.70 per ounce, up 0.38%, while spot silver was around $64.17 per ounce, gaining 0.69%.
The live pricing provided for September 25 showed spot gold at a bid of $4,284.20 per ounce at 7:29 p.m. New York time, up $10.40, or 0.24%, for the day. The session range was approximately $4,254.40 to $4,316.60.
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| Precious metal | September 25 late-session level |
|---|---|
| Spot gold | About $4,284–$4,290 per ounce |
| Gold price per gram | $137.74 |
| Spot silver | About $64.17 per ounce |
Gold’s gains were limited by the still-elevated Treasury yield and firm expectations for additional Fed tightening. Yet lower oil prices and continued geopolitical uncertainty provided support for bullion.
What Investors Are Watching
The next major market tests will be the August personal-income and spending report, including the Federal Reserve’s preferred PCE inflation measure, due Wednesday. The September employment report follows on Friday.
A softer inflation or jobs report could reduce expectations for another Fed rate hike and ease pressure on Treasury yields. Conversely, stronger data could reinforce the view that rates must remain high, potentially renewing pressure on utilities, bonds and high-valuation stocks.
Friday’s market rebound showed that Wall Street remains responsive to any improvement in the oil outlook. But with yields near 5.2%, inflation expectations elevated and the Hormuz situation unresolved, investors are likely to remain cautious heading into the final week of September.
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© Copyright 2026 – Eurasia Business News. Article no. 3185
