US stock market LIVE updates: Dow Jones opens lower; Xi Jinping US visit, US-Iran news in focus

Stocks joined bonds lower as higher oil prices stoked concerns about inflationary pressures, which were further reinforced by data showing that US business activity rose at its fastest pace since 2021.

Equities fell after a rally that had pushed the S&P 500 near a record, with chipmakers leading the decline. Brent crude topped $102 a barrel. Elevated energy costs fueled bets that the Federal Reserve will keep raising rates, with Governor Michael Barr saying further tightening is likely needed to bring inflation back to the target. Treasury 10-year yields jumped to their highest level since 2007, while the dollar climbed.

Brent crude rose above $101 a barrel on Wednesday after five consecutive sessions of losses, as uncertainty persisted over whether a formal agreement to reopen the Strait of Hormuz could be reached. Iran’s President Pezeshkian used his address to the UN General Assembly to reject restrictions on Iran’s civilian nuclear programme and reiterate Tehran’s opposition to a US military presence in the Middle East.

Benchmark 10-year Treasury yields hit their highest level since 2007 on Wednesday after data showed that US business activity accelerated to a more than five-year high in September, fueled by a surge in new orders.

S&P Global said on Wednesday that its flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 58.4 this month. That was the highest level since July 2021 and followed a reading of 56.0 in August, Reuters reported.

Stocks joined bonds lower as higher oil prices stoked worries about inflationary pressures, which were further bolstered by data showing jump in US business activity at the fastest pace since 2021. The rally that put the S&P 500 at a striking distance of a record took a breather. Brent crude topped $101.

Elevated energy costs fueled bets the Federal Reserve will keep raising rates, with Governor Michael Barr saying further tightening is likely needed to return inflation to the target. Treasury two-year yields climbed 12 basis points to 4.87%. The dollar hit the highest since July.

Iran’s president said Wednesday that his people have been “victims of terrorism” by the United States, delivering a rare wartime speech at the U.N. General Assembly a day after President Donald Trump said he could “annihilate” the Islamic republic.

In a defiant speech, President Masoud Pezeshkian held up large photos of the late Supreme Leader Ali Khamenei and more than 150 Iranian schoolchildren killed in the first days of the war, according to AP.

A renewed advance in oil prices sent stocks and bonds lower, with concerns about inflationary pressures also intensifying after US business activity rose at its fastest pace since 2021.

The rally that had taken the S&P 500 within striking distance of a record took a breather. Brent crude topped $101. Higher energy costs boosted bets that the Federal Reserve will keep raising rates, with Governor Michael Barr saying further tightening is likely needed to return inflation to the target. Treasury two-year yields climbed 11 basis points to 4.87%, while the dollar hit its highest level since July.

The latest geopolitical developments remained center stage as investors looked for a resolution in the Middle East that could serve as a risk-on catalyst after President Donald Trump flagged progress in US talks with Iran. Iranian President Masoud Pezeshkian is also scheduled to deliver his speech at the United Nations General Assembly, Bloomberg reported.

Pezeshkian is expected to focus on Iran's account of the conflict, what Tehran describes as crimes committed against the country and the breakdown of trust in international institutions.

Before leaving Iran, Pezeshkian said Tehran had repeatedly entered negotiations and signed agreements but accused other parties of failing to honour their commitments. He also called for an end to war and bloodshed.

Iranian Foreign Minister Abbas Araghchi has similarly made “trust” a central theme of Tehran's UNGA message, saying Iran has lost confidence in an international organisation that it believes has come under the influence of Western countries.

Iranian President Masoud Pezeshkian is set to make a rare appearance Wednesday on the world stage when he speaks at the U.N. General Assembly in what is likely the first time a foreign leader addresses the world body while their country is at war with the host nation, AP reported.

S&P 500 futures edged lower, while the Nasdaq retreated from a record high. The Dow Jones Industrial Average was also down at the open.

The retreat in key indices was pressured by a rebound in crude oil prices and government bond yields, as investors awaited developments from negotiations aimed at ending the Middle East conflict ahead of the high-stakes US-China summit.

The Dow Jones Industrial Average fell 92.3 points, or 0.18%, at the open to 51,771.41. The S&P 500 fell 2.7 points, or 0.03%, at the open to 7,761.94, while the Nasdaq Composite dropped 30.8 points, or 0.11%, to 27,213.519 at the opening bell, Reuters reported.

The greenback advanced 0.4% in fourth straight day of gains on Wednesday.

The currency has shown resilience in the face of lower energy prices as Federal Reserve officials continue to stress the need for policy vigilance after last week’s US interest-rate hike. Fed Governor Michael Barr and Chicago Fed President Austan Goolsbee are scheduled to speak later Wednesday.

Recent media reports suggest that Iran had offered to reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade of Iranian ports.

The development has raised hopes of fewer disruptions along the key global oil shipping route.

The US-Iran conflict has driven crude prices sharply higher this year, adding to inflationary pressures globally and complicating the outlook for central banks.

Oil prices remained lower in Wednesday’s trade after posting losses for five straight sessions, as markets assessed efforts to restore oil flows disrupted by the conflict in the Middle East.

Saudi Arabia is reportedly preparing to restart exports through its critical East-West pipeline in the coming days. The move could allow the kingdom to bypass the contested Strait of Hormuz and increase outbound shipments.

The pipeline was damaged by drone attacks last week, forcing the Saudi government to temporarily shut down the key crude oil artery.

Brent crude, the international benchmark, was down 0.6% at $98.68 per barrel. The price remained elevated compared with the roughly $72-per-barrel level seen in late February, before the Iran war.

Major US technology stocks advanced in the previous session, with chipmakers leading parts of the broader technology rally.

Nvidia shares rose 0.7%, while Advanced Micro Devices, or AMD, gained 1.3%. Broadcom added 0.5%, while Intel gained 1.7%.

The buying interest also extended to Asian technology stocks in Wednesday’s trade.

Samsung Electronics rose 3.3%, while South Korean memory-chip maker SK Hynix gained 1.2%. Shares of Taiwan Semiconductor Manufacturing Co., or TSMC, were up 1.6%.

The moves highlight continued investor interest in companies linked to the semiconductor and artificial intelligence supply chain.

The latest technology gains have been supported by a strong reception to Meta’s AI assistant, Muse, which analysts say could benefit technology infrastructure stocks.

At the same time, developments around AI are also generating fresh debate about potential disruption across parts of the technology sector.

Investors are monitoring the debate in the US over whether to slow down artificial intelligence development. AI is also expected to feature prominently when Trump meets Chinese President Xi Jinping in Washington this week, AP reported.

For markets, investors continue to assess both the potential growth opportunities created by AI and the disruption risks for existing businesses.

US stock futures traded mixed in Wednesday’s session, September 23, after the Nasdaq 100 index logged back-to-back record highs, powered by an extended rally in AI-linked stocks.

Wall Street’s benchmark S&P 500 futures were marginally higher as of 6 a.m. ET, hovering near their all-time high. Nasdaq 100 futures remained flat after the index climbed 0.5% in the previous session and closed at a record high. Dow Jones Industrial Average futures were also marginally higher, up 0.04%.

Investors are closely tracking technology stocks, crude oil prices and developments surrounding US-Iran relations as they assess the market direction.

Chinese President Xi Jinping is expected to reach Washington later in the day on a state visit. The agenda includes the trade truce arrived at last year between the two superpowers, AI regulation and US arms sales to Taiwan.

Officials from the two countries concluded their second day of talks in New York on Monday, seeking to advance negotiations ahead of Xi’s visit to the US.