US shares drop as oil costs and bond yields increase

Wall Street shares fell as oil prices went up and Treasury bond yields climbed. The S&P 500 index dropped 0.65 percent, the Nasdaq composite fell 1.07 percent, and the Dow Jones Industrial Average decreased 0.54 percent. Oil prices rose more than three percent after Iranian President Masoud Pezeshkian spoke at the United Nations. This followed a warning from US President Donald Trump that he could destroy Iran. At the same time, a survey showed US business activity reached a five-year high in September. This pushed government bond yields higher, with 10-year Treasury yields hitting their highest level since 2007. Market experts noted that investors want an end to the Middle East conflict to avoid higher interest rates for a long time. Federal Reserve Governor Michael Barr stated that the central bank may need to raise interest rates further because inflation remains above the two percent target. Traders now expect a 71 percent chance of a rate hike at the next Fed meeting. Stock movements varied across different companies. Meta Platforms shares went up 2.3 percent after a positive response to its Muse AI assistant. However, Google parent Alphabet fell 3.5 percent and Amazon dropped 2.4 percent after blocking Muse from its shopping platform. Travel companies also suffered, with Expedia and Airbnb both dropping more than six percent due to worries about AI impacts. Meanwhile, US President Donald Trump welcomed Chinese President Xi Jinping to Washington for a three-day visit to discuss trade, AI rules, and arms sales.