Bond Volatility Keeps Stocks in Check as Oil Fuels Inflation Concerns — US Market Wrap
Renewed volatility in bond markets kept investors cautious, with stocks wavering as elevated oil prices fueled concerns that persistent inflation could force the Federal Reserve to continue raising interest rates. The Treasury selloff deepened, pushing 30-year yields to their highest since 2004, while an expanded government bond buyback operation fell short of market expectations. The S&P 500 finished little changed, although most of its constituents declined. Brent crude settled near $107 a barrel after briefly trimming gains on reports that the US and Iran are exploring a phased agreement to reopen the Strait of Hormuz. Investors are demanding greater compensation to hold longer-term bonds amid concerns over persistent inflation, government spending and rising corporate borrowing to finance the artificial-intelligence investment boom. Against that backdrop, money markets are now fully pricing three additional Fed rate hikes over the next year. Elsewhere, President Donald Trump and Chinese President Xi Jinping discussed competition over artificial intelligence during a summit on Thursday. The talks followed a US announcement that the trade truce with China would be extended by rou
Renewed volatility in bond markets kept investors cautious, with stocks wavering as elevated oil prices fueled concerns that persistent inflation could force the Federal Reserve to continue raising interest rates. The Treasury selloff deepened, pushing 30-year yields to their highest since 2004, while an expanded government bond buyback operation fell short of market expectations. The S&P 500 finished little changed, although most of its constituents declined. Brent crude settled near $107 a barrel after briefly trimming gains on reports that the US and Iran are exploring a phased agreement to reopen the Strait of Hormuz.
Investors are demanding greater compensation to hold longer-term bonds amid concerns over persistent inflation, government spending and rising corporate borrowing to finance the artificial-intelligence investment boom. Against that backdrop, money markets are now fully pricing three additional Fed rate hikes over the next year. Elsewhere, President Donald Trump and Chinese President Xi Jinping discussed competition over artificial intelligence during a summit on Thursday. The talks followed a US announcement that the trade truce with China would be extended by roughly two months to Jan.
10.