Updated
Updated · Yahoo Finance · Sep 9
US Stocks Sink as Oil Tops $100 and 10-Year Yield Hits 4.84%
Updated
Updated · Yahoo Finance · Sep 9

US Stocks Sink as Oil Tops $100 and 10-Year Yield Hits 4.84%

3 articles · Updated · Yahoo Finance · Sep 9

Summary

  • Dow and Nasdaq each fell 0.7% on Wednesday, while the S&P 500 lost 0.5%, extending Tuesday's selloff as investors dumped risk assets.
  • Brent crude climbed to $101 a barrel and WTI to $96 after US-Iran fighting intensified and the US struck five Iranian oil tankers, stoking fears of prolonged Strait of Hormuz supply disruption.
  • The 10-year Treasury yield rose 4 basis points to 4.84%—its highest since October 2023—after Treasury Secretary Scott Bessent said the Treasury plans to triple its next bond buyback program.
  • Higher oil and yields also hardened rate expectations, with traders pricing a 60% chance of a 25 basis point Fed hike next week as inflation worries overshadowed a light earnings calendar.

Insights

Will escalating military clashes in the Strait of Hormuz force the Fed into a devastating rate hike?
Why did the Treasury's massive bond buyback plan actually trigger a dangerous spike in long-term yields?