Markets under pressure as oil jumps
Stocks and bonds extended their losses as renewed US-Iran fighting pushed oil higher and revived inflation fears.
Stocks slide
• Asia-Pacific stocks fell 2%
• Japan’s Topix dropped 2.2%
• Hong Kong fell 1%
• S&P 500 futures slipped 0.1%
Oil fuels inflation fears
• Brent crude climbed to $95.35 a barrel
• WTI rose to $90.74
• Rising energy prices are raising concerns about inflation and tighter interest rates
Bond yields hit hard
The US 10-year Treasury yield reached 4.81%, its highest level since late 2023. Higher yields are adding pressure on stocks, especially tech companies.
Rate hike bets rise
Markets are now pricing in a roughly 70% chance of a Fed rate hike in September, as investors weigh rising oil prices, inflation and bond yields.
What’s next?
Oil, bond yields and central bank decisions could remain key drivers for markets as geopolitical tensions stay elevated.