[New York Stock Exchange] Oil Prices and Treasury Yields Fall... All Major Indexes Rise

International Oil Prices Fall Below $100 per Barrel

On the 21st (local time), all three major indexes of the New York Stock Exchange are rising. This is attributed to a decline in international oil prices and U.S. Treasury yields, which has led to increased risk appetite among investors.

As of 10:35 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was trading at 51,903.91, up 221.27 points (0.43%) from the previous trading day. The S&P 500 index, which is large-cap oriented, was up 71.89 points (0.94%) at 7,721.30, and the tech-heavy Nasdaq Composite was 26,932.91, an increase of 412.77 points (1.56%).

New York Stock Exchange. New York, USA – Special Correspondent Yoonjoo Hwang

Today's rebound in the stock market is driven by falling oil prices. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for October delivery fell 4.91% to $95.38 per barrel, while Brent crude for November delivery, the global oil benchmark, declined 3.94% to $99.79 per barrel.

Tensions continue in the Middle East. Yemen's Houthi rebels, backed by Iran, announced that they attacked Saudi Arabia with missiles and drones on the 19th. After the United States and Iran traded threats on the possibility of resuming attacks, the U.S. Department of State issued a warning advising its citizens to reconsider travel to the Middle East. However, U.S. President Donald Trump stated that he is open to meeting Iranian President Masoud Pezeshkian during this week’s UN General Assembly, leaving room for diplomatic resolution.

Alongside falling oil prices, U.S. Treasury yields also declined. The yield on the benchmark 10-year Treasury note dropped by more than 3 basis points (1bp = 0.01 percentage point) to 4.963%. The yield on the 30-year bond, which is sensitive to monetary policy, fell by over 2 basis points to 5.298%.

However, there are lingering concerns that prolonged energy shocks from the Middle East could rekindle inflationary pressures and prompt the Federal Reserve (Fed) to raise rates further. Last week, the Fed increased its benchmark interest rate for the first time in over three years.

Ed Yardeni, CEO of Yardeni Research, analyzed, "The longer energy prices remain elevated, the greater the need for additional tightening." He pointed out that, as the conflict in the Middle East continues to threaten oil production and transportation, Russia’s refinery facilities are under attack by Ukraine, while Western sanctions on Russia also constrain the global fuel supply. "The longer the energy shock lasts, the higher the risk of secondary inflationary effects," he diagnosed.

The market is also closely watching the U.S.-China summit to be held this week. President Trump and Chinese President Xi Jinping are expected to discuss key economic issues, including artificial intelligence (AI), tariffs, and critical minerals. Ahead of the summit, U.S. Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng.

AI-related stocks are strong. Intel surged more than 6%, while Dell Technologies and Advanced Micro Devices (AMD) rose over 1% and 4%, respectively.

Jeffrey Roach, chief economist at LPL Financial, analyzed, "Geopolitical conflicts driving up energy prices are keeping the Fed’s hawkish stance intact while also putting pressure on Chinese refiners." He added, "The Federal Open Market Committee (FOMC), led by Fed Chair Kevin Warsh, based its inflation outlook on the assumption that oil prices will stabilize, and the Chinese government’s fiscal policy decisions will also hinge on this factor."

This content was produced with the assistance of AI translation services.