Wall Street opens lower as oil prices and Treasury yields rise

Wall Street opened in the red as renewed fighting between Washington and Tehran pushed oil prices higher and sent government bond yields to levels not seen since early 2025.

The Dow Jones Industrial Average fell 0.44%, or 236 points, to 52,949 at the opening. The S&P 500 declined 0.69% to 7,632, while the Nasdaq dropped 1.33% to 26,020.

West Texas Intermediate crude rose to $88.18 a barrel as investors bought oil contracts on expectations that a wider war escalation could drive prices higher. The renewed conflict also revived fears that a prolonged Middle East war would keep inflation elevated and force the Federal Reserve to raise interest rates.

The 10-year Treasury yield climbed three basis points to 4.788%, its highest level since January 2025, before Donald Trump returned to power. The 30-year yield rose more than two basis points to 5.272%, while the two-year yield stood near 4.362%. Investors showed less interest in the bonds amid inflation concerns.

The Federal Reserve is due to meet on Sept. 15 and 16. The FedWatch indicator showed markets expected the Federal Open Market Committee to raise rates to a range of 3.75% to 4%. Apple gained 1.02% after John Ternus took over as chief executive, ending Tim Cook’s 15-year term. Gold fell 1.85% to $4,398 an ounce, while silver lost 2.49% to $64.80.