Surging oil prices, higher bond yields weigh on stocks
NEW YORK - Oil prices surged Thursday as advances by Yemeni rebels threatened the flow of crude supplies while yields on long-term US Treasury bonds reached new multi-year highs following data showing an uptick in US wholesale inflation.
Oil prices soared Thursday as Yemeni rebels' advances threatened crude supply, while long-term U.S. Treasury bond yields hit new multi-year highs following a rise in U.S. wholesale inflation data. West Texas Intermediate oil jumped above $100 a barrel, with Brent crude soaring over 6% to above $107 a barrel. Major Wall Street indices ended the day in the red, with the S&P 500 dropping 0.6%.
Angelo Kourkafas of Edward Jones noted that rising oil prices and higher bond yields are starting to weigh on investor sentiment during a typically challenging season for stocks. The 30-year bond yield reached a new peak of 5.36%, driven by producer price inflation numbers showing an acceleration in August, up from 4.8% in July.
The Houthis, backed by Iran, are advancing towards the strategically important Bab al-Mandab strait, a waterway crucial for global energy supplies. Kathleen Brooks of XTB warned that this could lead to further disruption of Saudi shipping and global energy markets. The European Central Bank raised its benchmark interest rate to 2.5% while warning that inflation is likely to remain well above target for an extended period, potentially impacting the Federal Reserve's next monetary policy decision.
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Also reported by 2 other outlets
- Surging oil prices, higher bond yields weigh on stocks channelnewsasia.com
- Surging oil prices, higher bond yields weigh on stocks news.rthk.hk
