Why Stocks Went Up as Oil Prices Fell Friday
U.S. stocks rose on Friday, September 25, 2026, to end a bumpy week. The Dow Jones Industrial Average was up 0.78% at 51,747 points, while the Nasdaq was up 0.50% to 27,073.90 points, according to Reuters. That left stocks on track for a winning week.
The gain came after big swings in other markets. A jump in Treasury yields shook markets during the week, reported by CNBC. Treasury yields are interest rates for government borrowing that also shape loan rates. Stocks got help from a pause in rising oil prices near the close, according to BNN Bloomberg.
Oil prices fell about 3% on Friday on hopes for a truce between the United States and Iran, as reported by Reuters. Iran asked the United States to go back to the short-term peace deal that had failed to stop the war over the summer, CNBC reported the same day. Oil flows through the Strait of Hormuz reached 33.7 million barrels so far in the week, per that Reuters report.
The Wall Street Journal called the session 'Stock Market Today: Bond Yields Drop With Oil Prices Near End of Volatile Week' in its September 25, 2026 live coverage. It reported the Dow rose on hopes for a deal to reopen Hormuz. Bond yields fell with oil prices to end the volatile week.
Recent months had similar bumpy weeks. In the week covered by the Journal's 'Wall Street Ends Volatile Week with Quiet Finish' on September 18, the Dow fell 1.7% for its third weekly loss in a row while the Nasdaq rose 0.7%. The Journal's July 24 article 'Wild Markets Week Settles Down' said stocks ended the week lower after a calmer Friday. In the week covered by the Journal's June 18 coverage, the Nasdaq rose 2.4% while the Dow and S&P 500 rose nearly 1%. An earlier June report described a tentative U.S.-Iran deal to end fighting, with oil falling ahead of the possible deal, before the interim deal mentioned in September.
The broader context here is that households felt two squeezes at once. Higher yields can mean higher loan rates. Higher oil risk can mean higher gas and food costs. Think of it like two household bills rising together. When both fell on Friday, the overall market got a break.
What this means for positioning is that the Dow and Nasdaq reacted differently. The Dow's 0.78% gain beat the Nasdaq's 0.50% gain, which points to oil-sensitive companies getting more relief, while rate worries held back tech-heavy growth stocks. The 33.7 million barrel flow number helps check the price drop against real shipments.
In my view, Friday should be read as hopes for calmer times, not peace itself. Volatility did not disappear during the week, it bunched into Friday. Yields can jump again without new supply news. Oil can move faster than stocks if Hormuz headlines change.
