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Nasdaq today is under pressure as rising oil prices and surging Treasury yields weigh on technology stocks. The Nasdaq Composite fell 0.7% on Monday, Sept. 28, while investors assessed renewed Middle East tensions, persistent inflation risks and the possibility of higher interest rates.
The broader market also moved lower. The Dow Jones Industrial Average dropped 239 points, or 0.5%, while the S&P 500 declined 0.5%. The selling came after a strong week for Wall Street, when several technology and artificial intelligence-linked companies helped push major indexes higher.
Nasdaq Today Faces Fresh Pressure From Oil and Bond Yields
Oil prices climbed sharply at the start of the week after President Donald Trump rejected Iran’s conditional proposal for a ceasefire and the reopening of the Strait of Hormuz. Brent crude traded more than 2% higher at approximately $106.79 per barrel, while West Texas Intermediate futures rose around 2% to $94.40.
Higher energy prices have renewed concerns about inflation. If oil remains elevated, consumers and businesses could face increased transportation, manufacturing and operating costs. That pressure may make it harder for the Federal Reserve to reduce interest rates or could encourage additional rate increases.
Bond markets reflected those concerns. The benchmark 10-year Treasury yield moved above 5.2%, while the 30-year bond yield topped 5.5%. Both rates remained near multiyear highs, increasing the cost of borrowing for companies and putting pressure on stock valuations.
Critical Rate Concerns Hit Technology and AI Stocks
Technology shares were among the biggest decliners in Monday’s session. Advanced Micro Devices fell about 3%, Micron Technology declined roughly 2%, and Microsoft slipped around 2%. Meta Platforms dropped nearly 4%, while Amazon lost about 1%.
Growth stocks are particularly sensitive to rising interest rates because much of their valuation depends on expected earnings far into the future. When bond yields rise, those future profits become less valuable in today’s market, often prompting investors to reduce exposure to higher-priced technology shares.
The increase in borrowing costs could also affect the massive artificial intelligence infrastructure buildout. Data center operators, chip companies and cloud providers are spending heavily to expand computing capacity. Analysts have warned that expensive financing may make that expansion more difficult, especially if demand growth slows.
Nvidia Delivers a Surprising Bright Spot
Nvidia moved against the broader technology sell-off. The chipmaker’s shares gained more than 3% after the company announced an additional $150 billion authorization for share repurchases. The move brings the total value of Nvidia’s buyback program to approximately $235 billion.
The announcement provided investors with a strong signal of confidence from Nvidia’s leadership. The company remains one of the primary beneficiaries of the global AI boom, supplying advanced processors used in data centers and artificial intelligence systems.
Nvidia also introduced an Open Agent Safety Platform designed to help developers set safeguards for AI agents. The software is intended to prevent autonomous systems from escaping controlled environments or accessing unauthorized computer systems. The announcement follows disclosures from several major AI companies about safety incidents involving model testing.
Wall Street Watches Inflation Data and Jobs Report
Investors now face a busy economic calendar. The August personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, is scheduled for Wednesday. Manufacturing data is due Thursday, followed by the closely watched September jobs report on Friday.
Those reports could shape expectations for Federal Reserve policy and determine whether the recent rise in Treasury yields continues. Mohamed El-Erian, chief economic adviser at Allianz, said yields could remain near 5% even if oil prices decline because of a deeper imbalance between bond supply and demand.
Deutsche Bank analysts said mega-cap growth and technology stocks may still have room to advance, pointing to strong earnings growth and favorable positioning. However, they also identified interest-rate volatility as a major headwind.
What Investors Should Watch Next
- Oil prices: Further gains could intensify inflation concerns and pressure airline, transportation and consumer companies.
- Treasury yields: A sustained move above 5.2% could weigh heavily on growth-stock valuations.
- AI spending: Higher financing costs may slow data center construction and other technology investments.
- Economic data: Inflation and employment figures will influence expectations for future Federal Reserve decisions.
For now, Nasdaq today reflects a market caught between strong technology earnings and a tougher macroeconomic backdrop. Nvidia’s buyback announcement offered a notable bright spot, but rising oil prices and bond yields remain powerful forces shaping investor sentiment.
Frequently Asked Questions
Why is the Nasdaq falling today?
The Nasdaq is lower as rising oil prices and Treasury yields increase inflation concerns and reduce the appeal of high-growth technology stocks.
What happened to Nvidia shares?
Nvidia shares rose more than 3% after the company announced an additional $150 billion share buyback authorization, lifting its total program to $235 billion.
Why are Treasury yields important for technology stocks?
Higher Treasury yields increase borrowing costs and reduce the present value of future earnings, which can pressure growth and technology stock valuations.
What economic reports are coming this week?
Key releases include the personal consumption expenditures inflation index, U.S. manufacturing data and the September jobs report.
