NEW YORK — U.S. stocks fell across the board after Washington rejected Iran's offer to reopen the Strait of Hormuz within seven days if its conditions for ending hostilities were met. Treasury yields surged again as inflation concerns spread.
The Dow Jones Industrial Average closed at 51,481.51 on the 28th, down 347.11 points, or 0.67%, from the previous session. The Standard & Poor's 500 fell 59.72 points, or 0.77%, to 7,683.69, and the Nasdaq Composite dropped 248.34 points, or 0.92%, to 26,820.38.
Among the largest companies by market value, Apple fell 0.78%, Microsoft lost 1.35%, Amazon dropped 1.41% and Google parent Alphabet slipped 0.34%. SpaceX fell 2.16%, Facebook parent Meta tumbled 4.79%, Broadcom lost 0.92% and Tesla dropped 3.94%. SK hynix fell 5.03%, Micron lost 2.61%, AMD dropped 3.61% and SanDisk fell 3.65%. Nvidia rose 1.68% and TSMC gained 0.50%, holding up in the declining market. Nvidia's announcement that it would increase its share buyback program by $150 billion supported its stock.
Stocks were weak from early in the session after news that U.S. President Donald Trump had rejected Iran's seven-day plan for reopening the Strait of Hormuz over the weekend. Iran had demanded that the United States halt hostilities on all fronts including Lebanon, release more than $12 billion in frozen Iranian overseas assets, lift sanctions on Iranian crude and end its naval blockade of Iran, in exchange for reopening the strait within seven days. Trump told reporters at the White House on the 26th that he had turned down the deal with them.
The rejection also triggered another round of selling in U.S. Treasuries. The yield on the 10-year note, the benchmark for global interest rates, reached 5.274% during the session, its highest level since the 2007 global financial crisis. The 30-year yield, a reference for U.S. mortgage rates, climbed as high as 5.583%, the highest since 2004.
Crude prices, however, did not extend gains sharply as traders weighed the possibility of talks between Washington and Tehran. Brent crude futures for November delivery settled at $105.28 a barrel on the ICE Futures exchange in London, up 0.92% from the previous session. West Texas Intermediate futures for October delivery closed at $92.60 a barrel on the New York Mercantile Exchange, up 0.21%.
According to Reuters, the United States and Iran are each scheduled to hold separate talks with mediating countries on the 28th or 29th. Iranian Foreign Minister Abbas Araghchi and Qatari mediators are currently in New York. Trump said in an interview with U.S. online outlet Axios on the 27th that Iran wants to reach a deal and that he expects additional talks as early as this week.
