US stocks fall on spiking bond yields, higher oil prices
Analysts link rising Treasury yields to persistent inflation and expectations that a flood of US bonds will keep deficits high.
On Monday, US stocks declined as oil prices surged and Treasury yields rose sharply. The 30-year US Treasury bond yield surged to 5.31%, its highest level since June 2007, while oil prices climbed more than 2%. Analysts attributed the bond yield increase to concerns about inflation persisting and the anticipation that a large supply of US bonds entering the market would sustain high interest rates.
Market sentiment was dampened by the ongoing diplomatic dispute between the US and Iran over the Strait of Hormuz, which has impeded progress toward reopening the waterway. The US and Iran showed no signs of resolving their differences, despite the ceasefire expiring on Monday. US President Donald Trump threatened military action against Oman if it obstructed a potential deal.
With no apparent resolution in sight, the lack of progress in the Strait of Hormuz situation and rising inflation fears contributed to a bearish market sentiment among investors.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- US stocks fall on spiking bond yields, higher oil prices freemalaysiatoday.com
- US stocks fall as bond yields jump, oil prices rise news.rthk.hk
