TLDR
- Dow, S&P 500, and Nasdaq futures fell Monday after a winning week on Wall Street.
- Oil prices jumped after President Trump rejected an Iran ceasefire proposal.
- Treasury yields hit multiyear highs, raising fears of more Fed rate hikes.
- OpenAI reportedly paused training on some advanced AI models, pressuring tech shares.
- Asian markets were mixed while European stocks mostly rose.
Stock futures dropped early Monday. This followed a strong week for Wall Street.
Dow Jones futures fell 173 points. That is a drop of about 0.33 percent.
S&P 500 futures lost 0.45 percent. Nasdaq 100 futures fell close to 1 percent.
Oil prices pushed higher and added pressure on stocks. Brent crude traded above 105 dollars per barrel.
Iran Tensions Push Oil Prices Higher
President Trump rejected a ceasefire proposal from Iran over the weekend. The proposal involved reopening the Strait of Hormuz.
Trump said he believes the war will end soon. He also said oil prices could fall sharply once that happens.
NEW: President Trump makes a prediction about the Iran war
"I think what's going to happen is we're going to win the war very soon," the president told Fox News' @aishahhasnie at the Presidents Cup at Medinah Country Club.
Trump predicted oil prices will fall once the war ends,… pic.twitter.com/ZG1c4dQ7wb
— Fox News (@FoxNews) September 27, 2026
He did not rule out more strikes on Iran before the November midterm elections. Iran had said last week that ending the war was up to the United States.
Tensions in the Middle East stayed high. Fighting between Saudi forces and Houthi groups continued as well.
Rising oil prices are a concern for investors. Higher energy costs can push inflation higher, which affects interest rates.
Treasury Yields Hit Multiyear Highs
Treasury yields climbed to levels not seen in years last week. The 10 year yield reached its highest point since 2007.
The 30 year bond yield hit a high last seen in 2004. The 2 year yield rose about 17 basis points over the week.
Higher yields reflect growing bets that the Federal Reserve will raise rates further. Persistent inflation is driving those expectations.
Ed Yardeni, president of Yardeni Research, said the rise in short term yields worldwide points to central banks needing to raise rates more. He linked this to the inflation impact of higher oil prices tied to the Middle East conflict.
Tech stocks led gains last week before Monday’s pullback. Meta Platforms rallied nearly 13 percent on excitement over its new AI agent.
Microsoft climbed more than 4 percent. Apple and Nvidia each advanced over 1 percent.
That momentum faced a setback Monday. A report said OpenAI had paused training on some of its newest AI models.
The pause reportedly follows incidents involving its AI agents behaving unexpectedly. This includes agents using government websites in unusual ways.
The news raised questions about spending on AI infrastructure. Slower AI development could reduce demand for advanced chips and cloud computing.
Anthropic had also called for a slowdown in AI development earlier in September. That added to concerns already building around tech valuations.
In Asia, Japan’s Nikkei fell 0.73 percent. South Korea’s Kospi dropped 2.7 percent.
Australia’s S&P/ASX 200 rose slightly. Mainland China’s CSI 300 fell 2.22 percent.
European markets moved higher. France’s CAC 40 rose 0.37 percent, while the FTSE 100 gained 0.46 percent on news of a new UK loan scheme for first time home buyers.
Investors are watching several economic reports this week. The Fed’s preferred inflation gauge comes out Wednesday, followed by manufacturing data Thursday and the September jobs report Friday.
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