Oil tops $100 as Wall Street falls on Iran conflict
Oil has breached $100 and briefly touched $108, driving Wall Street to a fourth consecutive day of losses as the 30-year Treasury yield hits its highest close since 2004. Traders are increasingly pricing in a Fed rate hike, with semiconductor stocks falling sharply on renewed inflation concerns.
According to GN auto markets/bonds: treasury yields, the 30-year Treasury yield has hit its highest close since June 2004, while the Philadelphia Semiconductor Index dropped 2.66% as rate-sensitive tech stocks faced concentrated selling.
Source: GN auto markets/bonds: treasury yieldsAccording to GN auto markets/bonds, Brent crude briefly pierced $108 per barrel before settling at $107.63, while the 10-year Treasury yield climbed to 4.95%. Traders now assign a 73% probability to a Federal Reserve rate hike at next week's meeting, driven by accelerating wholesale inflation and resilient job market data.
Source: GN auto markets/bonds: bond marketAccording to GN stocks/sp500, the S&P 500 dropped 0.5% with every sector falling except energy, where Exxon Mobil and Chevron posted gains. The report notes that Brent crude settled at $101.21, its first breach above $100 since July, driven by the U.S. destruction of five Iranian tankers and the effective shutdown of the Strait of Hormuz.
Source: GN stocks/sp500Bond markets are amplifying the equity sell-off as the 10-year Treasury yield spikes to 4.85%, its highest level since late 2023, following a Treasury announcement of a $6 billion long-term debt buyback that failed to curb rising borrowing costs. According to GN auto markets/bonds data, traders are now pricing in a 62% probability of a Federal Reserve rate hike next week, driven by persistent inflation signals from soaring diesel and gasoline prices.
Source: GN auto markets/bonds: interest ratesBrent crude jumped 3.4% to $101.24, driving a broad sell-off in U.S. equities.
Source: GN auto markets/bonds: interest rates
