Update: US Equity Indexes Fall as Iran Settlement Talks Lose Momentum

03:34 PM EDT, 09/28/2026 (MT Newswires) -- (Updates with index/price action, macroeconomic data, corporate developments, company/geopolitical news from the first paragraph.) US equity indexes fell ahead of the close on Monday as Treasury yields rose after President Donald Trump rejected Tehran's settlement proposal, and while Iranian officials indicated that little progress was made last week at the United Nations General Assembly in New York. Iranian officials have expressed doubts about closing a deal with the US to end the conflict and reopen the Strait of Hormuz before the November US midterm elections, Bloomberg reported Monday, citing people with knowledge of the matter. The Nasdaq Composite fell 0.7% to 26,856. The Dow Jones Industrial Average fell 0.6% to 51,485.2, while the S&P 500 declined by 0.7% to 7,689. Communication services and consumer discretionary sectors led decliners. Trump said on Sunday after rejecting Iran's proposal that he expects US negotiators to engage in more talks with Iran this week, Axios reported, citing a conversation with the president. "They want to make a deal, but it is not the deal that I want to make. It is what we would have maybe agreed to a year ago," Trump said, according to Axios. Fed Governor Lisa Cook said she expects further upward inflation pressure from the rapid AI buildout, elevated oil prices, and Middle East-related supply chain disruptions, and the labor market is "well-positioned to handle an increase in rates." The majority of US Treasury yields rose intraday, with the 10-year yield edging up 5.7 basis points to 5.24% and the 30-year rate 5.8 basis points to 5.56%. The US West Texas Intermediate crude oil contract rose 0.4% to $92.83 per barrel. In economic news, the Dallas Fed's monthly manufacturing index declined to 9.8 in September from 11.6 in the month prior, compared with Bloomberg-survey expectations for a larger decrease to 7.8. The print for the company outlook fell to 8.7 from 19.2 in August. In company news, Kodiak Sciences (KOD) said Monday its two experimental eye drugs, Zenkuda and tabirafusp-ted, met primary endpoints in a phase 3 study in patients with wet age-related macular degeneration. Kodiak Sciences shares were up 186% in late afternoon trading.