ASX set to slide, Wall Street retreats as bond yields, oil prices rebound
The Australian sharemarket is set to retreat at the open as Wall Street’s benchmark index pulled back from its record high.
U.S. stocks experienced a retreat from their record highs on Wednesday, marking a decline in global markets. The S&P 500, a key indicator of the U.S. stock market, dipped by 0.6 percent, following its highest level in August. Similarly, the Dow Jones Industrial Average and the Nasdaq composite both saw declines of 1 percent and 0.8 percent respectively.
This downturn was attributed to rising bond yields, which put downward pressure on stock prices and other investments. Specifically, the 10-year Treasury yield increased to 5.30 percent from 5.27 percent, the highest level since 2002. This rise in yields was partly driven by a surge in oil prices, which climbed by 1.3 percent to $101.86 a barrel.
The higher oil prices are due to uncertainty surrounding the ongoing conflict in Iran and the potential return of the oil industry to normal operations. Additionally, the rise in yields is also a result of higher borrowing costs, which can slow economic growth and negatively impact investment performance.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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