Daily Market Snapshot: September 24, 2026

Brought to you by your local Edward Jones financial advisors. Thursday 9/24/2026 a.m. Stocks fall as inflation anxiety rises, tech lags - Equity markets are lower for a second consecutive day as rising oil prices and long-term bond yields continue to climb to their highest levels in more than two decades. WTI crude is up 2%, while Brent has moved back above $100 per barrel as hopes for a diplomatic resolution to the conflict with Iran faded following the latest UN meetings. Refined products have risen even more sharply than crude, with diesel prices surging to record highs. Given diesel's importance to transportation, construction, and agriculture, the move is adding to broader inflation concerns. On the positive side, Treasury Secretary Bessent announced that the U.S. and China have agreed to extend their trade truce by two months, through January 10, as both sides pursue a broader agreement. The extension comes ahead of planned meetings between the two countries' leaders at the APEC summit in November and the G20 summit in December. On the corporate front, Oracle shares fell more than 5% after reports that the company invoked force majeure provisions on a large New Mexico data center project following significant regulatory and permitting setbacks. The move is intended to limit the company's financial exposure if the facility fails to come online as planned in 2028. The news weighed on AI-related stocks, highlighting the financing and execution risks associated with the AI infrastructure buildout amid rising costs and growing political scrutiny of large-scale data centers. Higher yields are becoming a more meaningful headwind - The biggest challenge facing markets this week is the sharp rise in long-term bond yields to multi-decade highs, with the 10-year Treasury yield reaching 5.12%, its highest level since 2007, and the 30-year Treasury yield climbing to 5.42%, its highest since 2004. Several factors are driving the move higher, including 1) rising oil prices amid ongoing conflict in the Middle East, 2) increasingly hawkish Fed rhetoric as more policymakers signal support for additional rate hikes, 3) weak demand at yesterday's Treasury auction, and 4) stronger-than-expected economic data that reinforce the higher-for-longer rate narrative. While solid economic growth and healthy corporate fundamentals suggest interest rates are not yet restrictive enough to derail the expansion, the rapid increase in yields and elevated bond market volatility are creating a more meaningful headwind for equities. Any easing of geopolitical tensions that helps relieve pressure on energy prices could go a long way toward stabilizing the bond market, in our view. Until then, we believe upward pressure on yields is likely to persist as expectations for additional Fed tightening remain elevated. Solid economic activity and earnings remain pillars of support - Amid rising bond market volatility, we think it is important to recognize that yields are increasing for both negative reasons, such as inflation concerns, and positive reasons, including stronger growth that justifies higher interest rates and suggests Fed policy is not overly restrictive. Yesterday's PMI data showed business activity expanding at its fastest pace since 2021, pointing to real GDP growth running at roughly a 5% annualized pace. While PMI surveys may somewhat overstate the economy's underlying strength, they are broadly consistent with other indicators suggesting growth has accelerated in recent quarters alongside improving labor market trends. This backdrop should provide a solid foundation for corporate profits to continue growing. As investors look ahead to the start of third-quarter earnings season in the coming weeks, S&P 500 earnings are on track for one of the strongest periods of growth outside of post-recession recoveries, with profits for the year expected to increase 36%. Although valuations have compressed this year, robust earnings growth has more than offset that headwind. The bottom line, in our view, is that rising yields and higher oil prices are testing market resilience, but strong economic momentum and broad-based earnings growth continue to serve as powerful sources of support. 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