Bond yields rise as the US-Iran standoff causes stocks to decline — US Market Wrap
A dispute between the United States and Iran fueled oil-market volatility, driving down stocks and bonds on fears that inflationary pressures might prompt Federal Reserve rate hikes. While Brent crude's surge slowed, it hovered around $105 on dwindling hopes for an imminent political breakthrough in the Middle East conflict. The S&P 500 erased this month's gains, while the tech-heavy Nasdaq 100 fell 1.1%. Treasury 10-year yields reached a nearly two-decade high. Money markets increased their bets on an October Fed rate increase. The dollar climbed. Gold dipped. Iran and the United States appeared to be at odds over a fresh cease-fire deal or the reopening of the Strait of Hormuz, with Tehran insisting on a proposal rejected by President Donald Trump. According to CNN, Trump is willing to lift Iran's sanctions and release blocked funds in exchange for "concrete progress" on a nuclear deal. Nvidia, the chip developer at the heart of the artificial intelligence boom, upped the scale of its share buyback plan by a record $150 billion, underscoring CEO Jensen Huang's confidence in the company's future growth.
A dispute between the United States and Iran fueled oil-market volatility, driving down stocks and bonds on fears that inflationary pressures might prompt Federal Reserve rate hikes. While Brent crude's surge slowed, it hovered around $105 on dwindling hopes for an imminent political breakthrough in the Middle East conflict. 1%. Treasury 10-year yields reached a nearly two-decade high.
Money markets increased their bets on an October Fed rate increase. The dollar climbed. Gold dipped. Iran and the United States appeared to be at odds over a fresh cease-fire deal or the reopening of the Strait of Hormuz, with Tehran insisting on a proposal rejected by President Donald Trump.
According to CNN, Trump is willing to lift Iran's sanctions and release blocked funds in exchange for "concrete progress" on a nuclear deal. Nvidia, the chip developer at the heart of the artificial intelligence boom, upped the scale of its share buyback plan by a record $150 billion, underscoring CEO Jensen Huang's confidence in the company's future growth.