US stocks came under further pressure as the conflict in the Middle East continued to escalate, with increased strikes on shipping in the Gulf pushing both major oil contracts above $100 a barrel. Rising energy prices intensified inflation concerns and drove US Treasury yields sharply higher, leaving the benchmark 10-year yield within touching distance of the key 5% level. The US dollar strengthened in choppy FX trading, while gold fell sharply. Attention now turns to the latest US CPI report, although geopolitical headlines from the Middle East will remain a major market driver.
📊 Equities
US stocks came under further pressure yesterday as the conflict in the Middle East continued to escalate, with increased strikes on shipping in the Gulf pushing both major oil contracts above $100 a barrel. Rising energy prices intensified inflation concerns, driving US Treasury yields sharply higher. The Dow fell 0.60%, while the S&P 500 dropped 0.58% and the Nasdaq declined 0.65%.
🛢️ Oil
Oil was once again the major mover as escalating attacks on shipping increased concerns over energy supplies through the Gulf. Brent crude surged 7.29% to $108.57 a barrel, while WTI jumped 6.69% to $102.48.
🥇 Gold
Gold moved sharply in the opposite direction, falling 1.93% to $4,315.69 as the surge in US yields weighed on the precious metal.
💵 FX & Bonds
Treasury markets saw much bigger moves, with the 2-year yield jumping 15.8 basis points to 4.587% and the 10-year surging 12.2 basis points to 4.963%, leaving the benchmark yield within touching distance of the key 5% level. The US dollar also gained ground in choppy FX trading, with the Dollar Index rising 0.30% to 99.08. The euro notably pulled back despite the ECB delivering a 25-basis-point rate hike, as higher US yields helped support the greenback.
| Market | Change | Close |
|---|---|---|
| Dow | -0.60% | 52,064 |
| S&P | -0.58% | 7,591 |
| Nasdaq | -0.65% | 26,081 |
| USD | +0.30% | 99.08 |
| US Treasury – 2 Year | +15.8 bps | 4.587% |
| US Treasury – 10 Year | +12.2 bps | 4.963% |
| Oil – Brent | +7.29% | $108.57 |
| Oil – WTI | +6.69% | $102.48 |
| Gold | -1.93% | $4,315.69 |
📌 Today’s Focus
It looks set to be a very busy end to the trading week. Geopolitical headlines from the Middle East will remain a major driver, particularly with oil now firmly above $100 a barrel, but attention will shift back towards fundamentals as the New York session approaches. The key event will be the latest US CPI report early in the New York session. With Treasury yields already surging on renewed inflation concerns, any meaningful deviation from expectations could generate significant moves across bonds, the US dollar and equity markets.
🔹 European Session – 4.00 pm – UK – GDP Data
🔹 European Session – 7.15 pm – Switzerland – SNB Chairman Martin Schlegel Speaks
🔹 US Session – 10.30 pm – US – CPI Data
🔹 US Session – 12.00 am – US – Preliminary University of Michigan Consumer Sentiment Data