US Stocks Fall as 30-Year Yield Hits 2004 High - Europe Market Wrap
US stocks fell as another rise in oil prices intensified selling in bonds and pushed 30-year Treasury yields to their highest level since 2004. S&P 500 futures dropped around 0.6%, while Nasdaq 100 contracts slid 1% as technology shares came under pressure. The Treasury selloff extended at the longer end of the curve, with 30-year yields rising three basis points to around 5.43%. Brent crude climbed toward $104 a barrel, while the dollar headed for its longest winning streak since May as expectations for higher-for-longer interest rates strengthened. The decline threatened to erase much of the week’s equity rally, which had previously pushed the Nasdaq 100 to a record high. Rising bond yields are reducing the relative appeal of equities and increasing concerns that persistent inflation could keep borrowing costs elevated. Oil’s latest move higher followed warnings from an Iranian official that Tehran could expand the conflict toward the Indian Ocean if attacked by the US or Israel. The bond selloff also spread across Asia, with yields in Japan, Australia and New Zealand climbing by more than 10 basis points, while regional equities headed for further losses. Inflation concerns were
US stocks fell as another rise in oil prices intensified selling in bonds and pushed 30-year Treasury yields to their highest level since 2004. 6%, while Nasdaq 100 contracts slid 1% as technology shares came under pressure. 43%. Brent crude climbed toward $104 a barrel, while the dollar headed for its longest winning streak since May as expectations for higher-for-longer interest rates strengthened.
The decline threatened to erase much of the week’s equity rally, which had previously pushed the Nasdaq 100 to a record high. Rising bond yields are reducing the relative appeal of equities and increasing concerns that persistent inflation could keep borrowing costs elevated. Oil’s latest move higher followed warnings from an Iranian official that Tehran could expand the conflict toward the Indian Ocean if attacked by the US or Israel. The bond selloff also spread across Asia, with yields in Japan, Australia and New Zealand climbing by more than 10 basis points, while regional equities headed for further losses.
Inflation concerns were also reinforced by European central-bank decisions. The Swiss National Bank raised its inflation forecasts as it moved away from the prospect of intervention to support the franc, while Norges Bank increased borrowing costs for a second time this year and indicated it was prepared to raise rates again.