Wall St slips as higher yields and oil prices flag inflation risk
US stocks edged lower on Thursday as soaring oil prices and Treasury yields near multi-year highs stoked inflation worries on the cusp of a critical earnings season expected to test recent market gains. Brent crude futures jumped 4.2% to more than $104 a barrel on persistent worries about supply from the Middle East after increasing attacks on shipping in the Gulf and the Strait of Hormuz. The…
On Thursday, US stocks declined as surging oil prices and near-record Treasury yields heightened inflation concerns ahead of a crucial earnings season. Brent crude futures surged 4.2% to over $104 a barrel due to ongoing Middle East supply concerns. The 10-year Treasury bond yield hovered around 5.29%, nearing its highest level since 2002.
Global risk assets suffered as well, with mega-cap growth stocks like Amazon, Tesla, and Nvidia down between 0.3% to 1.3%. Chip-related firms, including Marvell Technology, Intel, and AMD, also experienced declines of approximately 3%, 3%, and 2% respectively. Samsung Electronics, despite forecasting record quarterly profits, saw its shares fall in South Korea.
Meanwhile, Broadcom is reportedly seeking $50 billion in financing for OpenAI, while Oracle is looking for an unspecified amount, raising fears of increased debt issuance by tech firms. The S&P 500 and Nasdaq slipped from their previous record highs, while the Dow Jones Industrial Average slipped 0.17% to 51,096.19. Federal Reserve Governor Christopher Waller suggested a potential rate pause at the next meeting, but further hikes might be necessary to curb inflation to the Fed's 2% goal.
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