U.S. Indexes Slip as Inflation and Geopolitical Risks Weigh

Major U.S. stock indexes ended last week lower. The Nasdaq Composite fell 0.20%, the S&P 500 lost 0.27% and the Dow Jones Industrial Average declined 0.42%.

Persistent U.S.-Iran tensions, elevated oil prices and Treasury yields, and concerns about inflation and interest rates weighed on investor sentiment. The University of Michigan’s final September consumer sentiment index was 48.1, down from 51.7 in August.

Economic data offered mixed signals. Initial jobless claims fell to 197,000 for the week ended September 19, while continuing claims edged up to 1.719 million. New home sales rose 6.4% in August to an annualized 684,000 units, their highest level since December 2025.

Durable goods orders were unchanged in August, beating expectations for a 0.5% decline, while core capital goods orders rose 1.6%. One-year inflation expectations increased to 4.6% from 4%, and the 10-year Treasury yield briefly reached 5.20%. The 30-year yield climbed to 5.48%, a multi-decade high.

Oil prices remained elevated amid Middle East tensions, but crude declined toward the end of the week on hopes of progress in U.S.-Iran talks.