Rising oil prices are knocking the U.S. stock market further from its record high on Monday, while building pressure even higher within the U.S. bond market.
The S&P 500 fell 0.8 per cent and gave back most of its gains from last week, which had brought it to the brink of its all-time high. The Dow Jones Industrial Average was down 372 points, or 0.7 per cent, as of 11:45 a.m. Eastern time, and the Nasdaq composite was one per cent lower.
Most of the U.S. stock market sank under the weight of a 2.8 per cent rise for the most actively traded contract in the market for Brent crude oil to US$100.19 per barrel. That overshadowed a gain for Wall Street’s most influential stock, Nvidia, after it announced a historic funneling of cash to its investors through a buyback of its shares.
Meanwhile, the Toronto Stock Exchange was in the red by about 0.75 per cent as many companies tied to mining gold, silver and other commodities struggled. Agnico Eagle Mines was down about 4.5 per cent and Lundin Gold was down roughly 5.5 per cent as of publication.
Oil prices have been yo-yoing on uncertainty about when the war with Iran will allow tankers to flow freely again through the Strait of Hormuz and deliver oil from the Middle East to customers worldwide. The latest turns came after President Donald Trump said over the weekend he’s rejecting an offer from Iran to reopen the Strait of Hormuz and resume talks on its nuclear program.
“I’d like to make a deal, too,” Trump said Saturday. “But that deal would not be acceptable.”
Brent climbed above $101 per barrel Monday morning, before the U.S. stock market opened for trading, but it pared its gains as U.S. officials said mediators were still working with Iran and the United States on a deal to end the fighting and open the strait.
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For all its ups and downs, a barrel of Brent remains much higher than the roughly $72 it cost before the United States and Israel attacked Iran in late February. That has helped worsen inflation, and the average price for a gallon of regular gasoline is up to nearly $4.48 from $3.13 a year ago, according to AAA.
Worries about inflation have in turn helped send Treasury yields much higher in the bond market. That pressures the economy because it makes borrowing money more expensive for everyone, while also undercutting prices for stocks and other investments.
The yield on the 10-year Treasury, which is the centerpiece of the bond market, jumped to 5.26 per cent from 5.17 per cent late Friday. That’s a considerable move for the bond market, and the 10-year yield is back to where it was in 2007, before the financial crisis and Great Recession sent yields toward zero.
The 30-year Treasury yield, which leaped to 5.58 per cent from 5.49 per cent, is back to where it was in 2004.
On Wall Street, stocks of airlines and other companies with big fuel bills sank because of the rise in oil prices.
American Airlines fell 3.8 per cent, and United Airlines lost 3.6 per cent.
Gold miners were also weak after the price of gold sank 3.9 per cent. Gold has a reputation for helping to protect its investors from high inflation, but its price tends to weaken when yields are rising and causing bonds to pay their investors more in interest. Gold struggles to keep up because it pays its investors nothing.
Newmont, the Denver-based mining giant, sank 4.4 per cent.
One of Wall Street’s bigger losses hit MongoDB, which dropped 18.5 per cent after the database company said its CEO, Chirantan “CJ” Desai, is stepping down immediately to pursue a senior role at Meta Platforms.
Such losses helped more than offset a two per cent rise for Nvidia. The chip company said it approved a plan to send up to another $150 billion to its shareholders in a stock buyback plan, bringing the program’s total remaining size to $235 billion.
Nvidia has the power to do so after the frenzy around its chips used for artificial-intelligence technology helped it more than double the amount of cash on its books in the first half of its fiscal year. The company also on Monday unveiled a new security platform that the chipmaker said can stop artificial intelligence agents from going rogue.
AI stocks broadly have come under pressure after leaders of the industry said it needs to slow its development to give safety measures time to catch up.
In stock markets abroad, European indexes were mixed following weaker performances across much of Asia.
Indexes dropped 2.7 per cent in Seoul and 1.7 per cent in Shanghai for two of the world’s bigger moves.
– with a file from Global News’ Ariel Rabinovitch
How often do companies shape the narrative of their communities simply by arbitrarily removing posts or suspending accounts without any reason?
The very act of not providing a reason negates any reason for justifying the action.
If informed, you appreciate what is unacceptable and move in a direction that solves for the pattern of behaviour you do not wish to allow.
If you refuse to provide reason, you simply incite and provoke a response without concern for whether it is negative or positive.
And yes, media companies, you are at risk of class action for removal of rational commentary in favor of the irrational and inciteful.
It is beyond freedom of speech to argue you have a right to manipulate people into believing lies by selectively removing context.
A system that confuses by design (or by the absence of design for a particular failure) produces a population that cannot distinguish signal from noise or fact from fiction, and the only response that is visible enough to matter is the one that requires no understanding at all: the loud and angry mob.
The rational person is structurally disadvantaged by the very clarity they possess.
This is why online forums/social media are filled with irrational commentary. The rational keep their distance while the irrational have their time on stage. The rational are otherwise drowned out by boos, or as is too often the case, silenced by the platform that prefers sensationalism to reality.
We have a government that wants to fight online hate when the perpetrators are the media that put it on display, above the more mundane reality of any given interaction.
Anger is the vice of ignorance.
The stock market exists to create more liquidity for the bond market.
Example: Company A has bonds it used to start mining a rich deposit of ore they discovered and have rights to.
After some time of bringing the ore to market, they want to expand and go back to the banks that acted as underwriter for the bonds with a plan that shows the potential for profitability if they issue another bond.
This time, however, the bond market is no longer looking as attractive in so much as there is sufficient uncertainty in markets to be concerned about Company A’s ability to pay it back. They think Company A is maybe biting into more than they can chew.
Instead of agreeing to a bond that gives Company A everything they want, they agree to underwrite shares in Company A’s business. This accomplished several things. The company still gets some seed money up front but the underwriters will now be able to sell the shares on the tertiary market. Now, the miner, the underwriter, the business and the public at large can invest in the company’s successes.
Let’s say Company A is a coal miner. At the time, coal is used in heating/survival, travel, creating tools and cooking.
The train company, the baker, and those that use their services have a reason to invest in the expansion along with the worker, underwriter and bondholders.
In this example, we have a commodity in coal, debt/bond in underwriting new startups, and shares/stock in the companies involved.
It represents sophisticated, orderly cooperation that is at the heart of all of humanities civilizations since the dawn of time.
Our leaders think it’s great or capital, and that’s why we decided to call it capitalism. It’s the act of striving for greatness.
Communists, whether by ignorance, emotion or mental struggle, think it is the worst system we have ever had because they are easily taken by rhetoric instead of reality. Capitalism is the only system we have ever had. It has merely evolved, just as we have.
People cry about low wage growth and inflation but I guarantee you stock in coal mining is not as valuable today either.
Anger is the vice of ignorance.
Ben, your comment is simply false. It takes 2 to be in a fight.
What we suffer from is 2 narcissistic leaders on either side of the border and a whole lotta ignorance between their supporters.
Canada was pushed into trade talks because of Trump, and his tariff policies and spite towards Canadian leaders and media that have been less than diplomatic.
The Liberals last election campaign was effectively “Dealing with Trump/Bad/Orangeman”.
Intelligence agencies follow elections around the world among many other things. To think Trump was not fully aware of Carney’s and Liberal’s contempt for him would be spectacular naivety the likes of which you exemplify on a daily basis.
You are simply an angry person that is obsessed with Trump despite your persistent claims of his lack of intelligence and your superiority.
“Ben
September 28, 2026 at 2:38 pm
And there is only one country, the USA, and one person, Trump, to blame for this.”
Justin Trudeau is partially to blame as well….11 years of anti oil and gas policies. Promoting “Go Electric ” has failed. We should be self sufficient. Yet we are not….today we pay huge gas and oil prices…Thank the Liberals everyone.
And there is only one country, the USA, and one person, Trump, to blame for this.