The Dow Jones Industrial Average dropped roughly 500 points in the September 8 session as oil prices climbed toward $100 a barrel, with traders citing the Iran war as the driver of the move. The S&P 500 also edged lower on the day, though by a smaller margin than the Dow, as rising Mideast tensions pushed energy costs higher.
Rising oil prices are reviving concerns about bond yields, since higher energy costs feed into inflation expectations and complicate the outlook for interest rates. One market note flagged bond yield worries persisting alongside the move in oil, tying the two together as a joint risk for equities.
What is unresolved is how far oil prices go from here and whether the Iran conflict escalates further; the market reaction so far has been an equity pullback and yield anxiety rather than a full risk-off rout.