Dow Jones records steepest drop in 21 sessions

US indices deepened their losses on Oct. 7 as the yield on 10-year Treasury bonds surpassed 4% for the first time since August.

Renewed geopolitical tensions in the Middle East have exacerbated inflation concerns, contributing to rising oil prices.

The Dow Jones Industrial Average fell 0.95%, or 398 points, to settle at 41,954 points, recording the lowest level since Sept. 25 and the steepest drop since Sept. 6 (410 points).

The S&P 500 index also fell 0.95%, or 55 points, to 5,695 points. The Nasdaq Composite Index plunged 1.2%, or 213 points, to 17,923 points.

As for European markets, the STOXX Europe 600 inched up 0.2% to 519.4 points.

The German DAX index edged down 0.1%, or 16 points, to 19,104 points. The British FTSE index rose 0.3% to 8,303 points. The French CAC 40 index increased 0.45% to 7,576 points.

In Japan, the Nikkei index added 1.80%, or 697 points, to 39,332 points, while the broader TOPIX index gained 1.7% to 2,739 points.

In the oil market, futures contracts for Brent crude for December delivery rose by 3.7%, or $2.88, to $80.93 per barrel, the highest close since July 13 ($82.36).

Meanwhile, prices of West Texas Intermediate (WTI) crude oil for November delivery gained 3.7%, or $2.76, to $77.14 per barrel, the highest since Aug. 12 ($77.37).

As for gold, futures prices for the yellow metal for December delivery remained unchanged at $2,666/ounce, after retreating to $2,657.30.