Higher rate expectations weigh on Wall Street
US shares fell on Monday as investors factored in higher bond yields, dearer oil and uncertainty over interest-rate policy.
.jpg){kind=link}
The main US stock indices closed lower on Monday. Investors reacted to rising US Treasury yields and fresh inflation concerns, while oil prices rose amid uncertainty surrounding talks between the United States and Iran.
According to Reuters, the main US stock indices fell on Monday after yields on US government debt rose further. The increase comes in a month in which short-term yields in particular have risen sharply. The two-year yield, which is sensitive to expectations about Federal Reserve policy, was around 56 basis points higher in September, according to Reuters.
Higher yields make government bonds more attractive relative to shares. At the same time, companies face higher financing costs and the future profits of fast-growing businesses become less valuable in financial models. Reuters therefore noted that large technology companies in particular, which borrow and invest heavily, could be vulnerable to a prolonged period of higher interest rates.
The oil market also played a role. Brent crude rose sharply again on Monday after US President Donald Trump rejected an Iranian proposal concerning the Strait of Hormuz. Reuters reported that Brent temporarily exceeded $108 per barrel. Higher energy prices can fuel inflation and thereby limit the scope for interest-rate cuts.
The Federal Reserve raised its policy rate by 25 basis points earlier this month. Investors are now trying to assess whether further increases are needed to curb price pressures. That remains uncertain because interest rates are not determined by the central bank alone: economic growth, energy prices, labour-market data and demand for US government debt also play a role.
The development cannot be translated directly into effects on the Dutch economy, but international capital markets are closely interconnected. Higher US interest rates can make financing more expensive worldwide, particularly for highly indebted companies. Earlier this month, the European Central Bank reported that the US ten-year yield was around 4.9 per cent during its measurement period. The market therefore remains alert to the combination of high energy prices, inflation and a longer period of restrictive monetary policy.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The market movements and interest-rate data are based on Reuters reporting and an ECB publication. The text distinguishes measured developments from explanations of possible consequences.
- confirmed The US stock indices fell on Monday. — Reuters described lower US stock indices on Monday. source
- confirmed The US two-year yield rose by around 56 basis points in September. — This figure is mentioned in the Reuters account. source
- confirmed The ECB reported a US ten-year yield of around 4.9 per cent during its measurement period. — This appears in the ECB’s Economic Bulletin Issue 6. source
- confirmed Brent crude temporarily exceeded $108 per barrel on Monday. — Reuters reported a rise to approximately $108.5. source
Editor's note
The market fall, higher US yields and the movement in oil prices were reported by Reuters. The causes of market movements remain partly interpretive; causal wording has therefore been kept cautious.Sources
- Stocks fall; bond market flips to higher for longer mode — Reuters via MarketScreener
- Wall St declines as oil prices, Treasury yields remain elevated — Reuters via StreetInsider
- Economic Bulletin Issue 6, 2026 — Europese Centrale Bank