Brent Crude Falls to $100.29 as 10-Year Yield Drops to 4.97%
Global equities rose Monday as Brent crude dropped 3.4% and US Treasury yields retreated from the 5% threshold.
Key points
- Brent crude oil declined 3.4% to $100.29, easing pressure on global equity markets.
- The 10-year US Treasury yield dropped to 4.97% after breaching the 5% threshold last week.
- The S&P 500 rose 1.5% on Monday, approaching its recent all-time high.
Brent crude oil fell 3.4% to $100.29, reversing part of last week’s spike. The drop in energy costs helped lift global stock markets on Monday.
The S&P 500 gained 1.5%, moving within 0.4% of its all-time high. This recovery followed a volatile week where oil prices approached $110.
Energy Costs Ease Inflation Pressure
US gasoline prices remain high at $4.48 per gallon, up from $3.18 a year ago. Morgan Stanley warns that further oil spikes threaten market targets.
Some Middle Eastern crude is moving through the Strait of Hormuz despite the conflict. Volume remains far below industry needs, keeping supply risks elevated.
Bond Yields Retreat From Five Percent
The 10-year Treasury yield eased to 4.97% from 5.01% late Friday. It had crossed the 5% mark last week for the first time in three years.
High yields increase borrowing costs for governments, households, and businesses. This financial strain contributes to broader economic uncertainty and slower growth.
Diplomatic Talks Support Market Optimism
Treasury Secretary Scott Bessent called recent talks with Chinese officials successful. Discussions covered trade, AI, and potential tariff reductions on $30 billion in goods.
China’s President Xi Jinping will visit the US from September 23 to 25. Analysts expect trade and Middle East security to dominate the agenda.
