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The Dow rose 478 points Friday, ending a three-week losing streak, as oil prices fell after a report that Iran proposed a plan to end the Middle East war. The S&P 500 and Nasdaq also gained for the week, but the 10-year and 30-year Treasury yields reached fresh 52-week highs, and September consumer sentiment weakened as inflation expectations rose.
The Dow Jones Industrial Average rose 478 points, or 0.9%, to 51,828 on Friday, while the S&P 500 and Nasdaq Composite also closed higher. Oil prices fell after The New York Times reported that Iran had proposed a plan to end the war in the Middle East, but 10-year and 30-year Treasury yields reached fresh 52-week highs, keeping pressure on markets heading into October.
The Dow’s advance ended a three-week losing streak. It gained 0.3% for the week. The S&P 500 added 0.5% Friday and 1.2% over the five days, closing at 7,743. The Nasdaq Composite rose 0.5% for the day and 2.1% for the week, ending at 27,068. Friday was the last trading day of September’s last full trading week.
The reported Iranian proposal was described by The New York Times as a seven-day plan to cease hostilities that would reopen the Strait of Hormuz and restart negotiations over Iran’s nuclear program. The report coincided with lower oil prices: front-month West Texas Intermediate futures fell 2.5% to $92.29 a barrel, and Brent crude futures declined 2.8% to $97.43. The proposal’s terms and prospects for acceptance were not established in the market summary.
Treasury trading was mixed. The two-year yield, often watched as a gauge of expected monetary policy, slipped 4.8 basis points to 4.847%. The 10-year yield reached 5.156% after edging down 0.6 basis points, while the 30-year yield rose 2.3 basis points to 5.485%; both longer-term yields set fresh 52-week highs. These moves came alongside survey results showing weaker consumer sentiment and higher inflation expectations.
Yields Keep Pressure on Markets
Friday’s gains offered some relief after the Dow’s three-week slide, and all three major indexes advanced over the week. But the session also showed why investors may remain cautious: long-term borrowing costs climbed to one-year highs even as stocks rose. Higher Treasury yields can raise financing costs for companies and households and can affect how investors value future corporate earnings. The market figures alone do not establish how much yields drove Friday’s trading.
The reported Iran proposal also matters because the Strait of Hormuz is a key route for oil shipments. A reopening could ease concerns about supply disruptions if a ceasefire and negotiations proceed, but the report does not confirm that the proposal has been accepted or that shipping conditions have changed. The fall in crude prices indicates a market reaction to the news, not a confirmed end to the conflict.
Consumer sentiment adds another concern for the economic outlook. The University of Michigan’s September index fell from August’s revised reading, while consumers’ inflation expectations rose. Those figures point to greater price concerns among survey respondents; they do not, by themselves, show how inflation or consumer spending will develop.
Inflation Fears Shadow September Gains
The University of Michigan’s revised Consumer Sentiment Index stood at 48.1 in September, down from 51.7 in August. The revised September result was higher than the preliminary 47.8 reading, but Surveys of Consumers Director Joanne Hsu said it was the index’s lowest reading since May and below 55.1 a year earlier. The figures describe survey responses, not a direct measure of household spending.
Year-ahead inflation expectations increased to 4.6% from 4.0% in August, the highest level since June. Long-term inflation expectations rose to 3.4%, following three months at 3.3%. Hsu said views of current and expected personal finances weakened by about 10% during the month, with concerns about high prices increasing. She also compared the current inflation expectation with the 3.4% reading in February before the Iran conflict began and with readings from 2024.
Company news contributed to individual stock moves. Akamai Technologies rose 3.2% after announcing a seven-year agreement to provide computing capacity to Anthropic, valued at $11.6 billion, with an option that could add $9 billion. MGM Resorts fell 3.3% amid a Wall Street Journal report that it was discussing a possible bid for People, whose shares rose 11.3%. The report followed People’s withdrawal of its own bid for MGM. These company developments were separate from the broader market’s rate and geopolitical concerns.
“Views of current and year-ahead expected personal finances both weakened about 10% this month, with concerns over high prices continuing to climb.”
— Joanne Hsu, Surveys of Consumers director
Iran Plan and Rate Outlook Remain Open
The reported Iranian plan remains a proposal in the available account. It is unclear whether the parties to the conflict will accept it, whether the Strait of Hormuz would reopen, or whether nuclear negotiations would resume. The market report also does not establish whether Friday’s drop in oil prices will persist.
The next direction for Treasury yields, inflation and stocks is likewise uncertain. Friday’s closing figures show that long-term yields reached 52-week highs, while the two-year yield declined; they do not establish whether borrowing costs have peaked or how policymakers will respond. The September survey records consumer expectations, which may differ from subsequent inflation data and actual household decisions.
October Opens With Rates in Focus
Investors will enter October watching Treasury yields, incoming economic data and any further developments on the reported Iran proposal. The next readings on prices and consumer conditions may help show whether September’s inflation concerns are reflected in broader economic measures. The market summary does not identify a specific scheduled policy decision or confirm when additional details of the proposal may emerge.
Company-specific developments will also remain relevant, including the Akamai-Anthropic computing agreement and any reported discussions involving MGM Resorts and People. Friday’s market close captures a single session and a five-day period; it does not establish how stocks, oil or yields will perform in October.
Source: rss
Key Questions
How much did the Dow gain Friday?
The Dow rose 478 points, or 0.9%, to close at 51,828. The gain ended its three-week losing streak.
Why did oil prices fall?
Oil prices fell after The New York Times reported that Iran had proposed a seven-day plan to cease hostilities, reopen the Strait of Hormuz and restart nuclear negotiations. The report did not confirm that the proposal had been accepted.
What happened to Treasury yields?
The two-year Treasury yield declined to 4.847%. The 10-year yield ended at 5.156% and the 30-year at 5.485%; both longer-term yields reached fresh 52-week highs during Friday’s trading.
What did the September consumer survey show?
The University of Michigan’s revised sentiment index fell to 48.1 from 51.7 in August. Year-ahead inflation expectations rose to 4.6% from 4.0%, according to the survey results.
Source: rss
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