Stocks fall and yields rise as crude oil surge fuels inflation fears
A sharp rise in oil prices driven by Middle East tension sent stock markets lower and pushed up Treasury yields ahead of the Federal Reserve's rate decision.
Global stock markets and bond prices declined as a surge in crude oil prices renewed concerns over persistent inflation ahead of the upcoming Federal Reserve policy meeting. Brent crude climbed past $116 per barrel following intensified conflict in the Middle East, which raised fears of potential disruptions to international energy supplies.
The benchmark S&P 500 recorded consecutive daily losses, despite a temporary stabilization in technology shares. Meanwhile, Treasury yields moved higher as investors adjusted their expectations for monetary policy in light of elevated energy costs.
Sources: Bloomberg.