Oil prices and bond yields are climbing Wednesday, with the Middle East and Ukraine wars squeezing markets on multiple fronts.
Brent crude, the international benchmark, is trading more than $20 above its early-July lows as tensions continue to escalate between the U.S. and Iran. Oil's quick return to near-$100-a-barrel levels has already pushed average gas prices at the pump above $4 a gallon and is stoking inflation concerns.
The prospect that higher energy prices will lift inflation has 10-year Treasury yields approaching their 2026 peak, and traders now see the likelihood of the Federal Reserve raising interest rates next Wednesday at just under 25%, from about 16% at the start of this week.
Stock-market moves are muted, with the Nasdaq composite slipping after Tuesday's chip-stock rally, while the Dow industrials are edging higher. Big Tech earnings will be in focus this afternoon, with updates from Alphabet, Tesla and IBM due after the bell.
Comments