U.S. stocks finished a choppy Thursday session little changed, with the Dow Jones Industrial Average slipping while the S&P 500 and Nasdaq Composite held roughly flat. Equities spent the morning under pressure as Treasury yields surged to their highest levels since 2007, but selling eased in the afternoon after reports that U.S. and Iranian negotiators were discussing a deal that would reopen the Strait of Hormuz in exchange for the easing of economic sanctions.
What Moved Markets
The Dow fell 169.84 points, or 0.33 percent, to close at 51,341.75. The S&P 500 dipped 1.90 points, or 0.02 percent, to 7,704.13, essentially flat on the day. The Nasdaq Composite edged up 3.34 points, or 0.01 percent, to 26,939.37.
The dominant story of the day was the bond market. The 10-year Treasury yield climbed as high as 5.15 percent before settling near 5.14 percent, its highest level since 2007, after a stronger-than-expected S&P Global PMI report pointed to the fastest pace of business activity growth in more than five years. That data pushed up bets on another Federal Reserve rate hike at the October meeting, with traders pricing in roughly a two-in-three chance of a quarter-point increase. Rising yields weighed hardest on rate-sensitive sectors such as housing, solar and small-cap stocks.
Oil prices also climbed, with West Texas Intermediate crude gaining about 1.6 percent to roughly $93.62 a barrel and Brent crude rising to near $104.58, as tensions around the Strait of Hormuz kept a geopolitical risk premium in place even as talk of a possible diplomatic resolution helped stocks pare their early losses.
Notable Movers
Meta Platforms (META) gained about 3.3 percent after the company unveiled new VR glasses and outlined plans to expand AI-driven advertising monetization.
Eli Lilly (LLY) rose roughly 3.5 percent following FDA approval of its once-weekly insulin treatment.
Everpure (P) jumped more than 18 percent on news of a pending S&P 500 index promotion alongside upbeat revenue guidance.
On the downside, MGM Resorts (MGM) tumbled about 10.5 percent after Barry Diller’s People Inc. withdrew its roughly $48.30-per-share buyout proposal for the casino operator.
Oracle (ORCL) dropped about 4.5 percent after the company issued a force majeure notice related to delays at a New Mexico data center project, raising questions about its AI infrastructure buildout timeline.
Looking Ahead
Investors will be watching closely for further developments out of the U.S.-Iran talks in New York, since any formal agreement on the Strait of Hormuz could meaningfully ease pressure on oil prices and broader risk sentiment. Attention will also stay fixed on the bond market, where yields near multi-decade highs continue to weigh on stock valuations, particularly for smaller and more rate-sensitive companies. With the October Fed meeting drawing closer, upcoming economic data on inflation, employment and consumer spending will be scrutinized for clues on whether policymakers follow through on another rate increase. Earnings season is also picking up, and results from major retailers and tech companies in the coming weeks should offer a clearer picture of how businesses are managing higher borrowing costs heading into the final quarter of the year.