Oil prices and bond yields give back some of last week’s jumps
Oil prices are swinging as some crude from the Middle East is able to sail through the Strait of Hormuz, though nowhere nearly as much as the industry and customers would like.
U.S. stocks and global markets experienced a slight decline on Monday, as oil prices and bond yields softened from their recent increases. The S&P 500 regained 1.5% and reached within 0.4% of its all-time high, while the Dow Jones Industrial Average climbed 348 points, or 0.7%, and the Nasdaq composite gained 2.2%. Brent oil prices dropped 3.4% to $100.29 USD, although they are still significantly higher than the roughly $72 per barrel seen earlier in the summer.
Oil price volatility persists due to some Middle Eastern crude passing through the Strait of Hormuz, despite the ongoing Iran war. Morgan Stanley's Michael Wilson warns that another rise in oil and gasoline prices could hinder the U.S. stock market's progress toward the year-end target. Gasoline prices in the U.S. have risen to about $4.48 USD per gallon, up from $4.32 USD a week ago and from $3.18 USD a year earlier.
The 10-year Treasury yield eased to 4.97% from 5.01% on Friday, following its first crossing above the 5% level in three years. This drop is attributed to inflation concerns, government debt issues, and other factors, which negatively impact the economy by increasing borrowing costs for the U.S. government and households/businesses.
Some investors capitalized on recent oil price gains, while optimism boosted investor confidence due to discussions at the UN General Assembly and between U.S. and Chinese leaders. U.S. Treasury Secretary Scott Bessent revealed that the meeting with China's Vice Premier was "very successful." The talks covered trade, AI, and other topics, including reciprocal tariff reductions worth $30 billion.
China's Foreign Ministry confirmed that President Xi Jinping will visit the U.S. from Sept. 23 to 25, and experts expect discussions on trade, tariffs, and AI safety during the visit. On Wall Street, AI industry stocks stabilized, and cryptocurrency stocks rallied after Bitcoin's price surpassed $85,000, reaching its January level.
World indexes also benefited from the drop in oil prices and bond yields, rising by 0.9% in France, 1.2% in Hong Kong, and 1.6% in South Korea.
Written by urgent.news from Global News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
