US equities moved lower as Middle East tensions and another surge in oil prices weighed on sentiment ahead of the Federal Reserve decision. Treasury yields climbed, with the 10-year yield moving above 5%, while the US dollar strengthened. Brent and WTI posted sharp gains, while gold finished marginally lower. Markets now turn to the FOMC interest rate decision and press conference.
📊 Equities
All three major US indices finished in negative territory as investors remained cautious ahead of the Federal Reserve announcement. The Dow Jones fell 0.63%, the S&P 500 declined 0.45%, and the Nasdaq dropped 0.78%.
🛢️ Oil
Oil prices surged again as concerns over global supply intensified. Saudi Arabia announced that some shipments to European clients had been cancelled, adding further pressure to an already tight market amid the continuing Middle East conflict. Brent crude jumped 2.60% to $108.43, while WTI gained 4.15% to $105.59.
🥇 Gold
Gold experienced another choppy session as traders balanced geopolitical risks against the stronger dollar and rising US yields, eventually closing 0.11% lower at $4,293.01.
💵 FX & Bonds
US Treasury yields continued their recent move higher, with the benchmark 10-year yield breaking above the key 5% level and reaching its highest level since 2007. The 2-year yield also edged higher as markets increased expectations for another Fed rate hike. The probability of a 25-basis-point increase at today’s meeting is now around 93%.
The US dollar extended its recent gains, with the USD Index rising 0.18% as higher Treasury yields and expectations of tighter monetary policy continued to support the greenback.
| Market | Change | Close |
|---|---|---|
| Dow | -0.63% | 52,093 |
| S&P 500 | -0.45% | 7,585 |
| Nasdaq | -0.78% | 25,981 |
| USD Index | +0.18% | 99.65 |
| US Treasury – 2 Year | +0.8 bps | 4.666% |
| US Treasury – 10 Year | +1.5 bps | 5.002% |
| Oil – Brent | +2.60% | $108.43 |
| Oil – WTI | +4.15% | $105.59 |
| Gold | -0.11% | $4,293.01 |
📌 Today’s Focus
Markets will focus on UK inflation data during the European session before attention shifts to US retail sales, crude oil inventories, and the Federal Reserve’s interest rate decision and press conference.
🔹 European Session – 4.00 pm – UK – CPI Data
🔹 European Session – 4.00 pm – UK – PPI Data
🔹 US Session – 10.30 pm – US – Retail Sales Data
🔹 US Session – 12.30 am – US – Crude Oil Inventory Data
🔹 US Session – 4.00 am – US – FOMC Interest Rate Decision
🔹 US Session – 4.30 am – US – FOMC Press Conference