Wall Street Mixed as Oil Prices Fall on Resumed US-Iran Talks

The three major U.S. stock indices closed mixed.

The S&P 500 finished flat near the 7,700 level, while the Nasdaq rose 0.45% to break its all-time high for the second consecutive day.

By sector, materials rose 2% and consumer staples gained 1%, whereas communication services and financial stocks weakened by 1% each.

Wall Street closed mixed, bolstered by falling oil prices following the resumption of talks between the United States and Iran.

U.S. President Trump stated that he held a meeting with the Iranian delegation on the sidelines of the United Nations General Assembly and had productive talks, easing concerns over supply instability originating from the Middle East.

Additionally, foreign media reports emerged that Iran could reopen the Strait of Hormuz within a week on the condition that the U.S. eases military pressure, along with news that Saudi Arabia is preparing to restart its pipelines.

Consequently, West Texas Intermediate (WTI) and Brent crude oil recorded declines for the fifth straight trading session.

However, the yield on the 10-year U.S. Treasury note hovered around the 4.95% range, heightening concerns over prolonged high interest rates.

Federal Reserve officials repeatedly emphasized the necessity of a tight monetary stance to stabilize inflation, and bank stocks, which are sensitive to rising interest rates, bore the brunt of this burden and showed sluggish performance.

Among individual stocks, SanDisk surged by over 6%, driven by analysis pointing to robust demand for AI hardware.

Tomorrow (September 24), S&P Global will release its preliminary September manufacturing and services PMIs, which will provide a gauge of whether the economy is slowing down.

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