Live: US markets down amid plan to 'collapse' Iran's economy, ASX to follow
The US is urging allies to join it in a bid to "collapse" Iran's economy to end the Middle East conflict. Follow the day's events and insights from our business reporters on the ABC News live markets blog.
US markets experienced a downturn as the US government urged allies to collaborate in a plan to collapse Iran's economy and end the Middle East conflict. The US Treasury Department announced a buyback of longer-dated debt, aiming to stabilize yields and provide relief to investors. However, the move was seen as a temporary fix rather than a long-term solution, as bond yields rebounded higher, pushing stocks under pressure.
The US government bond yields increased from 5.1765% to 5.247%, while the 10-year yield rose to 4.7%, reflecting market skepticism about the effectiveness of the Treasury's measures. Elevated oil prices, particularly Brent crude futures, contributed to a negative sentiment, as they rose by 2% to $93.49 a barrel due to ongoing tensions in the Strait of Hormuz.
Despite the market turmoil, enthusiasm for AI investment remained strong, with semiconductor stocks gaining on the day.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
