US Stocks Fall, Treasury Yields Reach 2007 Highs

U.S. stocks and bonds swung through late September as investors weighed elevated oil prices, inflation risks and the Federal Reserve’s next move. Rising Treasury yields—driven in part by concerns that the Iran war could disrupt energy supplies—pressed stocks lower and pushed long-term yields to multi-decade highs. Fed officials’ comments that policymakers could take time to assess incoming data helped cool expectations for an October rate hike, while a subsequent inflation report that came in below forecasts further reduced those expectations. Yields and oil prices eased in later trading, supporting modest gains in some stock indexes, though long-term bond yields remained near their highs and investors continued to watch economic data and energy-market developments.