US stocks open lower as oil prices, Treasury yields rise; Dow drops over 300 points

US stocks opened lower on Monday, September 28, with the Dow Jones Industrial Average falling more than 300 points, as rising oil prices and a jump in Treasury yields weighed on sentiment amid renewed US-Iran tensions.

The Dow fell 377 points, or 0.7%, while the S&P 500 and Nasdaq Composite each declined 0.5%. Brent crude rose more than 2% to $106.79 a barrel, while West Texas Intermediate futures gained around 2% to $94.40 after President Donald Trump rejected conditions for a ceasefire proposed by Iran.

Treasury yields jump

Treasury yields extended last week’s sharp moves, with the benchmark 10-year Treasury yield trading above 5.2% and the 30-year yield topping 5.5%. Both yields were near multiyear highs, adding pressure on equities.

Markets remained on edge after Trump rejected Tehran’s proposal to reopen the Strait of Hormuz and end the war. Trump told Axios that talks would resume this week, with officials back at the negotiating table.

AI stocks weigh on markets

Several AI-linked stocks led the major indexes lower. Chipmakers Advanced Micro Devices and Micron Technology fell about 3% and 2%, respectively. Amazon slipped 1%, while Microsoft declined 2% and Meta shed nearly 4%.

Nvidia shares also drew attention after the AI chipmaker authorised an additional $150 billion for share buybacks, taking its total remaining repurchase authorisation to $235 billion through fiscal 2028.

The company also released two open-source tools, OpenShell and Nvidia Sentry, aimed at helping control rogue AI agents.

Economic data in focus

Investors are also looking ahead to a busy week of economic data. The August Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation gauge, is due on Wednesday, followed by US manufacturing data on Thursday.

The closely watched September jobs report is scheduled for Friday, giving investors fresh clues on inflation, the labour market and the broader health of the US economy.

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