Global stocks fall as bond yields surge, oil rises sharply

Brent crude climbed above US$100 a barrel while the US 10-year Treasury yield hit its highest level since 2007 amid renewed Middle East tensions and inflation concerns. — AFP pic

First Published: Thursday, 24 Sep 2026 9:45 AM MYT

NEW YORK, Sept 24 — Stock markets fell yesterday as oil prices rose sharply and US bond yields jumped on inflation fears, with world leaders at the UN General Assembly offering little to suggest progress in ending turmoil in the Middle East.

After several sessions of falls, the price of North Sea Brent crude rose 3.86 per cent to US$103.08 per barrel (RM421.49) and West Texas Intermediate (WTI) crude gained 1.81 per cent to reach US$92.16 (RM376.84) per barrel.

The benchmark US 10-year Treasury yield rose to 5.11 per cent — its highest level since 2007.

Iranian President Masoud Pezeshkian struck a defiant tone at the UN, vowing Tehran would never “bend at the knee” to the US as their stalled war drags on.

On Tuesday, President Donald Trump had told the UN that he was weighing whether to “annihilate” Iran but went on to hail renewed talks with Tehran.

On Wall Street yesterday, the Dow Jones fell 0.68 per cent and the broader S&P 500 slid 0.75 per cent while the Nasdaq shed 1.13 per cent.

The US Federal Reserve lifted borrowing costs last week, providing relief to traders concerned that policymakers were not moving quickly enough to address a spike in inflation.

Treasury yields are rising and stocks falling as “there is now the notion that the Fed will continue to hike rates, not one and done,” Angelo Kourkafas, of Edward Jones, told AFP.

“Part of the reason is also there’s no clear off-ramp in regards to the energy markets, the UN comments today and the headlines coming out of it have not necessarily helped the sentiment around geopolitical risks.”

Hopes for a deal to get Gulf oil and gas flowing freely through the Strait of Hormuz as global leaders gathered in New York had sent oil prices down in recent sessions.

John Kilduff of Again Capital told AFP that “we’re taking back some of the enthusiasm from yesterday about the meeting between Iran and the US.

“There wasn’t necessarily all that much substance to what occurred.”

“A sudden spike in the oil price caught investors off guard and reminded them not to be complacent about inflationary pressures,” said Dan Coatsworth, head of markets at AJ Bell.

The OECD yesterday said that global economic growth had been “resilient” in many countries despite the war, as it slightly raised its economic output forecasts for 2026.

European stocks lost ground — Frankfurt closing 0.7 per cent down and Paris losing almost half a per cent while London finished flat.

Asian indices also pulled back.

Earlier in Asian trading, Hong Kong closed down one per cent, shrugging off an announcement by Chinese tech giant Alibaba that it would expand its overseas data centres, and Shanghai lost 0.4 per cent.

South Korea’s tech-rich Kospi and Taiwan’s Taiex index — home to chipmaking titan TSMC — gained nearly one per cent. — AFP