Dow Soars on Hopes of Iran Deal, But Bond Yields and Gas Prices Raise Concerns

The Dow Jones Industrial Average jumped 478.64 points to 51,828.62 on September 25, capping a bumpy week with a solid rally.

Falling oil prices and a pause in the bond selloff gave investors room to breathe as crude prices fell 2.3% to around $92 a barrel and Brent crude dropped about 2% to $104.32 on hopes that the U.S. and Iran could reach a deal to reopen the Strait of Hormuz.

The technology sector led the charge with Microsoft rising more than 3% after unveiling a revamped Copilot built around its Autopilot feature, while Akamai Technologies gained 3% after announcing an $11.6 billion, seven-year computing deal with Anthropic.

However, beneath the green numbers, the week delivered warning signs that matter more to household budgets than to stock portfolios as the yield on the 10-year Treasury note touched 5.23%, its highest level since June 2007, and the average 30-year fixed mortgage rate climbed to 7.49%.

The national average gas price hit $4.48 a gallon, compared with $3.16 a year ago, according to AAA, while Americans now expect inflation of 4.6% over the next year, the highest since June, according to the University of Michigan's consumer sentiment index.