Stocks cautious in Asia as oil gains, yields rise
Oil’s surge and rising Treasury yields lifted borrowing costs and pushed investors toward the dollar, with 66% of traders pricing a Fed hike in October, analysts said.
- On Monday, Wall Street opened lower after President Donald Trump rejected an Iranian proposal to end the conflict, sparking a spike in crude oil prices and reviving inflation worries.
- Over the weekend, Trump rejected an Iranian offer to reopen the Strait of Hormuz and resume nuclear talks, stating that "that deal would not be acceptable" despite interest in a potential agreement.
- Airline stocks fell as rising oil prices increased fuel costs, with American Airlines falling 3.5% and United Airlines losing 3.3%, while the Dow Jones Industrial Average fell 0.8% and the Nasdaq Composite dropped 1.2% by 11 a.m. Eastern time.
- Treasury yields surged significantly, with the 10-year Treasury jumping to 5.27% from 5.17% late Friday and the 30-year Treasury leaping to 5.57% from 5.49%, returning to 2024 levels.
- Worries about inflation persist, with the average price for a gallon of regular gasoline at nearly $4.48, while Brent crude remains well above the roughly $72 per barrel seen before February's United States and Israel attacks on Iran.
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Wall Street Retreats as Oil Surge Revives Inflation and Fed Rate Fears
U.S. stocks closed lower Monday as escalating oil prices pushed Treasury yields higher and increased expectations for another Federal Reserve rate increase, while uncertainty surrounding ... The post Wall Street Retreats as Oil Surge Revives Inflation and Fed Rate Fears first appeared on [your]NEWS.
The New York stock market fell as oil prices rose and U.S. Treasury yields hit multi-year highs due to escalating tensions between the U.S. and Iran. Technology stocks took a hit due to concerns over interest rate hikes, and the market is placing a high value on the possibility of a further rate hike by the FOMC in October.
Today, as oil prices and treasury bonds rose, American equities declined at a time when investors are assessing the haze of the prospects for an agreement on Iran ' s war and its impact on the Fed ' s interest rate path (Central Bank of the United States).
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