The three major U.S. stock indexes opened lower amid the rising trend in Treasury yields and oil prices.

At 9:41 a.m. local time on September 15, the Dow Jones Industrial Average fell 294.74 points (0.56%) from the previous session to 52,126.46 at the New York Stock Exchange.

The S&P 500 index declined 8.84 points (0.12%) to 7,611.14, and the Nasdaq Composite index dropped 28.14 points (0.11%) to 26,158.28.

Investor sentiment dampened as Treasury yields rose on expectations that the Federal Reserve will enter a rate hike cycle starting with the September Federal Open Market Committee (FOMC) meeting.

According to the CME FedWatch Tool, the U.S. fed funds futures market priced in a 92.7% probability of a 25-basis-point rate hike by the Fed this week.

In addition, the probability of the Fed raising rates by 25 basis points by the end of this year stood at 20.5%, while the chance of a 50 to 75 basis point hike was 78.1%.

The yield on the benchmark 10-year U.S. Treasury note surged to 5.0450% on this day, marking its highest level since July 2007.

Oil prices remaining at high levels, with no signs of easing in the Middle East conflict, also weighed on the stock market.

This is because red flags have been raised over crude oil supply and demand after Saudi Arabia shut down its East-West pipeline starting on September 11, while the timing of its restart remains uncertain.

The Associated Press reported that it could take 3 to 5 weeks.

Also on this day, Saudi Arabia issued an alert even for Mecca, the Islamic holy site, following an attack by the Iran-backed Houthi rebels.

Although it was a short-lived alert that was lifted shortly afterward, it marked the first time an alert has been issued up to the holy site of Mecca since the outbreak of the current Middle East war.

Anthony Salvenbini, chief market strategist at Ameriprise Financial, explained, "Energy is currently having the most negative impact in terms of inflation. Given the current inflation trend, solid employment conditions, and the new Fed chair establishing credibility, the September rate decision carries the highest probability of a rate hike that the market has seen this year."

Looking by sector, energy and technology showed strength, while all other sectors weakened. Dave & Buster's Entertainment saw its stock slide 12.11% following its earnings release.

Dave & Buster's reported an adjusted net loss of $0.27 per share for the second quarter, missing the consensus estimate of an adjusted earnings per share (EPS) of $0.18, and its revenue came in at $544.1 million, falling short of the market expectation of $556.8 million.

Online lending and credit service company Enova International saw its shares plunge 24.55% after announcing that it was withdrawing its regulatory application filed for the acquisition of Grasshopper Bancorp.

Sysco, which provides wholesale distribution services to restaurants, hospitals, and schools, dropped 2.26% after announcing the issuance of 12.3 million shares of common stock at $81 per share.

European stock markets mostly showed a downward trend.

The Euro Stoxx 50 index was trading down 0.28% at 6,243.14.

The U.K.'s FTSE 100 index and France's CAC 40 index fell 0.25% and 0.12%, respectively.

Germany's DAX index rose 0.15%.

International oil prices advanced.

At the same time, the price of West Texas Intermediate (WTI) crude for October 2026 delivery, the front-month contract, was up 2.17% from the previous session at $103.59 per barrel.

(Photo: AP, Yonhap News)