Dow closes 110 pts lower as treasury yields rise and oil stays above $100

• The 10-year Treasury yield rose above 5% for the first time since July 2007, reflecting expectations of a higher-for-longer rate environment with markets pricing 50%+ probability of an October Fed hike
• Oil prices remained above $100 (WTI at $100.30, Brent at $103.87) despite Friday's decline, keeping inflation pressures elevated and pushing US diesel prices to record levels
• Major indices showed mixed performance: Dow down 0.22%, S&P 500 up 0.12%, Nasdaq up 0.35%, with semiconductors helping support broader equity markets

Market Summary

Market Performance:

U.S. equities closed mixed on Friday, September 18, 2026. The Dow Jones fell 114.74 points (-0.22%) to 51,663.30, marking its third consecutive weekly decline with a nearly 2% weekly loss—the worst since March. The S&P 500 gained 11.53 points (+0.12%) to 7,647.19, down 0.3% for the week. The Nasdaq advanced 92.72 points (+0.35%) to 26,511.01, up 0.3% weekly, supported by a semiconductor rally.

Key Drivers:

*Treasury Yields:* The 10-year Treasury yield climbed above 5%, reaching 4.998%—the highest since July 2007. This follows the Federal Reserve's recent 25-basis-point rate hike, bringing the target range to 3.75%-4%. Markets now price over 50% probability of another October rate increase, up from 42.5% a week prior and 7.2% a month ago.

*Oil Prices:* WTI crude fell 1.58% to $100.30/barrel, while Brent declined 0.91% to $103.87. Despite Friday's retreat, prices remain above $100, fueling inflation concerns. U.S. diesel prices hit record levels, potentially impacting farming and shipping costs. China asked Iran to limit Houthi attacks on Saudi infrastructure at Saudi Arabia's request.

Company News:

• Berkshire Hathaway announced developments nine months after Greg Abel became CEO
• Xenon Pharmaceuticals paused clinical trials due to side effects
• Cryptocurrency-linked stocks rallied as Bitcoin surged to $81,000

Market Implications:

The combination of elevated yields and oil prices sustains inflation pressures, supporting higher-for-longer rate expectations and adding volatility to equity markets. Triple witching contributed to late-session turbulence.