US Stocks Struggle as Rising Bond Yields and Oil Prices Weigh On Markets

US stock indexes rose modestly at the start of trading on Wall Street, but struggled to maintain gains throughout the day. The S&P 500 slipped 0.2% after wavering between small gains and losses for most of the session. The Dow Jones Industrial Average dropped 0.3%, while the Nasdaq composite fell 0.1%. The declines came as rising bond yields undercut the significant contributions made by prominent tech stocks, including Nvidia, which lost 0.7%.

Rising oil prices continued to exert pressure on markets, with Brent crude falling 1.7% to $96.16 a barrel. This has contributed to higher Treasury yields, reaching 5.25%, their highest level in 24 years. Energy stocks were among the broadest losers, with Exxon Mobil shedding 0.7%. Meanwhile, CarMax surged 4.7% after reporting strong second-quarter revenue and profits that exceeded Wall Street expectations.

The US jobs market showed signs of resilience despite high inflation, with job openings dipping to 7.08 million in August. However, consumer confidence has been eroded by the ongoing conflict between the US and Iran, which is curbing oil shipments through the Strait of Hormuz. The latest update from The Conference Board revealed a slump in September, with Americans feeling less confident about their employment prospects and pulling back on big-ticket purchases.