Stocks and Bonds Tumble as War Anxiety Lifts Oil: Markets Wrap
(Bloomberg) — Stocks and bonds fell as oil surged anew, with President Donald Trump dashing optimism that the war in the Middle East is nearing a swift resolution and that disruptions to crude and gas flows will ease.
S&P 500 futures dropped 1.2% after the benchmark hit a one-week high in the previous session. European and Asian stocks also fell. Brent crude jumped 6.7% to nearly $108 a barrel after Trump used a prime-time address to pledge more aggressive action against Iran over the next two to three weeks and offered no concrete plans to reopen the Strait of Hormuz.
The dollar headed for its biggest advance in a week while gold snapped a four-day winning streak. Bonds tumbled globally, unwinding Wednesday’s rally as expectations of prolonged high oil prices prompted traders to initiate fresh bets on tighter monetary policy.
“This market just isn’t manageable,” said Laurent Lamagnere, deputy chief executive officer at Alphavalue in Paris. “We’re really concerned about second-round effects, not only on oil prices but also on oil supply, for example airlines trimming destinations with harsh consequences for tourism.”
Optimism had been building in the run-up to Trump’s speech after the president had earlier said he foresaw the US ending the war with Iran within two to three weeks. The conflict has already roiled financial markets and pushed several equity gauges into correction territory as investors pared risk.
“The longer higher energy prices persist, the more it eats into consumer spending,” said Mathias Heim, chief investment officer at Belle Capital. “In the absence of fiscal transfers elsewhere, it reduces disposable income and lowers demand.”
Corporate News:
Estée Lauder Cos. and Spain’s Puig Brands SA are advancing in negotiations to combine, people familiar with the matter said. Alibaba Group Holding Ltd. has released its third proprietary AI model in as many days, reinforcing the company’s intent to focus on profiting off its flagship artificial intelligence services. Stellantis NV is discussing options for building electric vehicles in Canada with its Chinese partner, Zhejiang Leapmotor Technology Co., according to people familiar with the matter. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 1.1% as of 8:35 a.m. London time S&P 500 futures fell 1.2% Nasdaq 100 futures fell 1.5% Futures on the Dow Jones Industrial Average fell 1.1% The MSCI Asia Pacific Index fell 2.1% The MSCI Emerging Markets Index fell 2% Currencies
The Bloomberg Dollar Spot Index rose 0.4% The euro fell 0.6% to $1.1522 The Japanese yen fell 0.5% to 159.64 per dollar The offshore yuan fell 0.3% to 6.8966 per dollar The British pound fell 0.8% to $1.3205 Cryptocurrencies
Bitcoin fell 2% to $66,778.23 Ether fell 4.3% to $2,051.19 Bonds
The yield on 10-year Treasuries advanced five basis points to 4.37% Germany’s 10-year yield advanced four basis points to 3.03% Britain’s 10-year yield advanced six basis points to 4.89% Commodities
Brent crude rose 6.6% to $107.87 a barrel Spot gold fell 2.8% to $4,627.42 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Olivia Levieux.
©2026 Bloomberg L.P.
