Market Open: Stocks Rise, Mortgage Rates at 2½-Year High, Gas Prices Up • 9/25/26

0:01CNBC Business News Update Market Open. I'm Jessica Ettinger, Wall Street. Higher out of the gate, there have been reports of diplomatic efforts to ease the U.S. war with Iran and the Russian assault on Ukraine. And some investors are hopeful. The Dow's up 179 points. Caterpillar shares leading the Dow higher this morning. They're up one and a quarter percent. The S &P 500 index is up 11 points. The Nasdaq up 36 points. Investors are watching treasury yields again today. They rocketed to highs not seen in decades, giving investors returns with very little risk, motivating some people to leave stocks and move into bonds.

0:39It's called a terra trade. There is a reasonable alternative to stocks for some people now. Checking the rate on the 10-year treasury, it is eyeing 5.2 % this morning at 5.18. Traders are assessing what the rapid yield moves mean for a swath of assets and wondering whether the quick climb for yields is an omen that something could break in the market. More than 130 guests, 27 CEOs, were at the Black Tie State Dinner at the White House last night, President Trump hosting China's President Xi Jinping. Some believe the night was light on policy, the two countries agreeing on some student visas and more flights between the countries.

1:21tech titans were at the tables. Now, besides the tech and finance heavyweights that we knew about, other attendees included the leaders of Paramount Skydance, Pfizer, LVMH, AMD, I could go on, and a few notes on the guest list. Amid all the tech CEOs, there was no one from Anthropic invited, despite all the focus on AI. There were also no Chinese CEOs in attendance, something that had initially been expected. And it was Jensen Huang and Elon Musk who got those seats at the head table with the presidents. And both Presidents Trump and Xi delivered remarks at the dinner. President Trump spoke of U.S.-China relations that he said had never been better.

1:54She then called the friendship between the U.S. and China a worthy cause that holds great promise. CNBC's Megan Casella in Washington. Mortgage rates popped late yesterday after Mortgage News Daily recalculated some new data, putting the average rate on a 30-year fixed home loan just shy of 7.5%. The average rate on the 30-year fix just hit 7.45 percent. That according to Mortgage News Daily. That is the highest since April of 2024. Now, I know you may have seen headlines from Freddie Mac that rates had just crossed 7 percent, but that's an average backdated over a week. So rates really began shooting higher this week with the bond sell-off.

2:36Now, remember, we were at 6.75 percent just at the end of August. That's CNBC's Diana Olick. experts warn that increasing yields will also lead to higher car loan interest rates and higher payments for consumers who carry balances on their credit cards. Later this morning, we get the latest on consumer sentiment, as pain at the pump is slightly worse today for Americans. AAA says the national average for a gallon of regular, now$4.49. Diesel fuel pulled back two cents overnight to$6.50. New in theaters for the weekend, A24's Primetime, DreamWorks animated Forgotten Island, and Paramount's The Heart of the Beast.

3:18Jessica Edinger, CNBC.

3:26Nassau and Paradise Island is home to the world's clearest turquoise waters and white sand beaches, where families can explore our vibrant culture, taste local flavors, and dance to Bahamian rhythms. All this and more is just a short flight away. This holiday season, plan your escape at NassauParadiseIsland.com.