U.S. stocks opened mostly flat on Tuesday as investors reacted to easing oil prices and a slight pullback in Treasury yields.
At 09:31 ET, the S&P 500 was up 0.1% at 7,694.21 points. The Nasdaq Composite gained 0.3% to 26,893.86 points, while the Dow Jones Industrial Average slipped 0.1% to 51,416.96 points.
The muted opening followed losses in the previous session, when rising bond yields and energy prices pressured Wall Street.
Treasury Yields Remain a Key Market Driver
U.S. stocks came under pressure on Monday as the bond-market selloff intensified.
The benchmark 10-year Treasury yield climbed to a fresh 19-year high, while the 30-year yield reached its strongest level since 2004.
Bond prices and yields move in opposite directions, meaning the recent selloff in Treasuries has pushed borrowing costs higher across the market.
Analysts at Deutsche Bank noted that September continued to live up to its reputation as a difficult month for both stocks and bonds.
Oil Prices Add to Inflation Concerns
Energy markets have also played a major role in recent market volatility.
President Donald Trump rejected a new Iranian peace proposal that could have reopened the Strait of Hormuz and eased pressure on global oil supplies.
Oil prices rose after the decision, adding to concerns that a prolonged energy shock could keep inflation elevated.
Investors are worried that persistent inflation could force the Federal Reserve to raise interest rates several more times.
OpenAI Reports Pressure AI Stocks
Artificial intelligence stocks also faced selling pressure after reports suggested OpenAI had halted training of new AI models.
The company was also reported to have scrapped plans to launch a new model in the coming days.
The news weighed on semiconductor and data center-related stocks as investors considered the possibility of slower AI development.
Any sustained slowdown in AI expansion could reduce demand for chips, cloud infrastructure and computing capacity.
Goldman Sachs in Focus
Goldman Sachs was among the individual stocks drawing investor attention.
The Wall Street Journal reported that the bank’s board had discussed a potential leadership transition.
According to the report, CEO David Solomon could step down and be replaced by Chief Operating Officer John Waldron as early as 2027.
Goldman Sachs shares traded lower following the report.
Investors Await U.S. Labor Market Data
Markets are now turning their attention to upcoming U.S. economic data.
Job openings figures for August are due later on Tuesday and could provide fresh insight into the strength of the labor market.
Several Federal Reserve officials are also scheduled to speak, including Michelle Bowman, Austan Goolsbee and John Williams.
Their comments could provide additional clues on the future path of U.S. interest rates.
Economic Data Could Determine the Next Market Move
Analysts at Citi said Treasury yields could continue rising if equity markets remain resilient and energy prices stay elevated.
However, upcoming economic data is likely to determine whether current yield levels can be sustained.
For investors, the combination of Treasury yields, oil prices, labor market data and Federal Reserve policy remains central to the near-term outlook for U.S. stocks.
