All four major US indexes dropped as failed talks with Iran pushed oil and bond yields higher — bad for stock investors, though TSMC's US-listed shares edged up.

• Talks between the US and Iran produced nothing on a ceasefire or reopening the Strait of Hormuz, so oil prices climbed again.
• Higher oil feeds inflation fears, and investors now worry the Fed could raise interest rates further.
• Government bond yields rose for a fifth straight day, hitting their highest close since mid-2007 — a heavy weight on stocks.
• Most Taiwanese company shares traded in New York fell, with TSMC a rare gainer.

Outlook: Wednesday's consumer spending data and Friday's September jobs report will decide whether the market prices in more rate hikes; a resilient economy would push bond yields, and pressure on stocks, higher still.