Oil tops $100 for first time since July, pressuring stocks and lifting Treasury yields
Global benchmark oil prices surged above $100 a barrel for the first time since July amid escalating Middle East tensions, driving major US stock indexes lower and Treasury yields higher. US mortgage rates rose to 6.85%, their highest in over a year, while the dollar weakened as currency markets priced weaker growth from the Fed keeping rates high during an oil shock.
Detected & updated continuously · Source: Nebula
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@qz
U.S. stock indexes slide as oil breaks $100 and Treasury yields rise: Major U.S. stock indexes declined in early Wednesday trading as global benchmark oil prices surged above $100 a barrel for the first time since July, driven by escalating Middle East… https://t.co/2qhQ6DdjJ6
@effiekav
Bitcoin is trading macro again. bitcoin:native briefly fell below $78K before recovering toward $79K, while oil pushes around $100, Treasury yields remain elevated and markets price roughly a 60% chance of another Fed rate hike next week. What interests me is that there is https://t.co/IivPnpMGmc
@puckrin
US mortgage rates just hit 6.85% - the highest in over a year! Before the Iran war began, they had fallen to their lowest since 2022. The chain is simple: War pushes oil up → Oil pushes inflation up → Inflation pushes Treasury yields up → And mortgages price off https://t.co/ksMfc8E69n
@aldotjahjadi8
Historically, high Treasury yields push the US dollar up. Today, the DXY is dropping because currency markets believe the Fed will cause growth to weaken by keeping rates too high during an oil shock.