Financial Markets                      09/29 15:37

   

   Stocks closed modestly lower on Wall Street Tuesday as another increase in 
long-term Treasury yields weighed on the market.

   The S&P 500 slipped 0.2% after wavering between modest gains and losses for 
much of the day. The Dow Jones Industrial Average dropped 0.3%, and the Nasdaq 
composite fell 0.1%.

   Major indexes shifted lower after a quiet morning as rising bond yields 
undercut much of the heavy lifting being done by several technology behemoths. 
Nvidia, the market's most influential stock, gave up an early gain and closed 
0.7% lower. Broadcom rose 1.6%.

   Stocks remain under pressure as oil prices swing sharply as the U.S. war 
with Iran drags on, helping to push Treasury yields to their highest levels in 
24 years.

   The price of Brent crude oil in the most actively traded part of the oil 
market fell 1.7% to settle at $96.16 a barrel. It briefly climbed above $100 on 
Monday before prices eased a bit, but it is still well above the roughly $72 it 
cost before the U.S. and Israel attacked Iran in late February.

   
https://apnews.com/article/iran-trump-negotiations-war-strait-nuclear-871504dbd9
8d9b08b226b9805d8f4606 with the United States and Iran on reaching a deal to 
end the fighting and open the https://apnews.com/hub/strait-of-hormuz. U.S. 
President Donald Trump over the weekend 
https://apnews.com/article/mideast-roundup-iran-saudi-israel-yemen-c529a0a729600
230559354b80c005bad to reopen the key waterway.

   Energy stocks had some of the broadest losses. Exxon Mobil fell 0.7%.

   Overall, rising oil prices have been fueling a jump in Treasury yields. 
Higher yields threaten to slow economic growth by making borrowing more 
expensive for individuals and businesses. They can also hurt prices for stocks, 
especially those seen as expensive, including many technology companies that 
have soared because of the frenzy around AI technology.

   The yield on the 10-year Treasury rose to 5.25% from 5.24% late Monday, 
touching its highest level since 2002, according to Tradeweb, well before the 
financial crisis and Great Recession sent yields toward zero.

   Shares of CarMax rose 4.7% after the used car dealership chain reported 
soaring second-quarter revenue and delivered profits that easily beat Wall 
Street expectations. The company also announced changes to its executive 
leadership.

   
https://apnews.com/article/oura-smart-ring-ipo-postponed-36ae9ef8f167d4fe061204c
582f78c51, the maker of wearable digital health accessories and jewelry, said 
Tuesday that it was postponing its initial public offering, despite strong 
demand, due to uncertainty in the IPO market.

   All told, the S&P 500 fell 12.85 points to 7,670.84. The Dow dropped 131.59 
points to 51,349.92, and the Nasdaq gave up 22.84 points to close at 26,797.54.

   Markets in Europe ended mixed and markets in Asia closed mostly lower.

   With only one day left in September, the S&P 500 is on pace for a slight 
monthly loss after posting a 2.6% gain in August. The benchmark index is up 
12.1% so far this year.

   Wall Street will see several big economic updates this week that could help 
investors and the Federal Reserve get a better sense of where inflation is 
headed and how households and businesses are dealing with high prices.

   The latest update on the jobs market Tuesday showed that 
https://apnews.com/article/employment-economy-inflation-layoffs-59a79b9752ff98ab
1a1aa70d0f129607 The Labor Department's monthly report said they slid to 7.08 
million openings, marking a drop from July and registering below what 
economists had forecast. It also showed that layoffs fell and fewer people are 
quitting their jobs.

   The jobs market has been resilient even as stubbornly high inflation 
squeezes businesses and households. Wall Street will get a broader update on 
Friday, when the U.S. releases its monthly employment report for September.

   Households have been facing higher prices on everything from gasoline to 
clothing as the U.S. war with Iran curtails oil shipments through the Strait of 
Hormuz. The latest 
https://apnews.com/article/consumer-confidence-inflation-economy-gas-prices-b942
9c6d4f025d00e6283bfde4e0197d from business group The Conference Board shows a 
slump in September. Consumer confidence dipped to its lowest level in 12 years.

   "Americans feel jobs are more scarce and are pulling back on plans for 
homes, cars, and big-ticket purchases, emitting a warning sign for holiday 
spending even though layoffs data show employers aren't yet cutting workers to 
match the gloom," said Jeffrey Roach, chief economist for LPL Financial, in a 
research note.

   Stubbornly high inflation has been sapping consumer confidence and 
pressuring the Fed, which recently raised its benchmark interest rate in an 
effort to cool prices. The latest update of the central bank's preferred 
measure of inflation will be released on Wednesday. Economists expect the 
personal consumption expenditures index, or PCE, to show that the rate of 
inflation rose 3.7% August, matching July's reading.

   Inflation rates have remained stubbornly above 3% most of the year and that 
is well above the Fed's target rate of 2%. Wall Street expects the central bank 
to raise its benchmark interest rate again at its next meeting in October.

   ___

   Associated Press business writers Chan Ho-him and Matt Ott contributed to 
this report.

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