Stocks and Bonds Slide Globally as Oil Tops $100: Markets Wrap
(Bloomberg) — The war in the Middle East sparked fresh turmoil in global markets as oil smashed through $100 a barrel, spurring losses in stocks and bonds. The dollar climbed against most major currencies.
A slide in equities deepened after their worst week since October, with the S&P 500 down over 1%. Benchmark 10-year Treasuries rose for a sixth straight session – the longest advance since August – as higher energy costs spurred inflation fears despite risks to the economic outlook. Traders expect the Federal Reserve’s next quarter-point rate cut no earlier than September.
Markets around the world have been rocked by disruption to supply out of the Persian Gulf. Prices of oil and gas have soared as the US and Israel continue to strike Iran, while the Islamic Republic retaliates with missiles and drones across the Middle East. A sustained increase in energy costs could trigger a surge in inflation and squeeze economic growth.
“The US-Iran War is testing energy-shock resiliency,” said Thierry Wizman at Macquarie Group. “That’s relevant insofar as central bankers will recall that a general burst of commodity price inflation led the consumer inflation burst in 2022.”
Brent crude surged to almost $120 a barrel on Monday, from around $72 before the war, as the effective closure of the Strait of Hormuz largely trapped exports from producers. Prices eased slightly on news the Group of Seven finance ministers were set to discuss a possible joint release of oil reserves on Monday.
As the escalating war in Iran hurts global markets, US stocks are facing a growing risk of a sharp selloff this year, according to veteran strategist Ed Yardeni, who updated his outlook for what he describes as “fast-moving times.”
Yardeni has raised the probability of a market meltdown to 35% for the rest of the year, up from 20% previously. At the same time, he slashed the odds of a “melt-up” — a rally driven more by investor enthusiasm than underlying fundamentals — to just 5% from 20%.
Traders are unprepared for a correction in the S&P 500 that could see the gauge falling as much as 10% from its peak as a result of the war in Iran, according to JPMorgan Chase & Co.’s trading desk. Andrew Tyler, JPMorgan’s head of global market intelligence, turned “tactically bearish” on Monday.
Corporate Highlights:
Novo Nordisk A/S and Hims & Hers Health Inc. will work together to sell obesity drugs, a sudden reversal after more than eight months of acrimony that culminated in a legal battle. Jefferies Financial Group Inc. was downgraded to equal-weight at Morgan Stanley on credit risk exposures. Live Nation Entertainment Inc. has reached a settlement with federal antitrust authorities in a lawsuit that accused the company of illegally monopolizing the live music industry, the Justice Department said Monday. Nasdaq Inc. said it’s planning a new design for tokenized equities, with publicly traded companies having more control over their shares in tokenized form, including proxy-related and corporate actions as well as governance rights. Some of the main moves in markets:
Stocks
The S&P 500 fell 1.3% as of 9:43 a.m. New York time The Nasdaq 100 fell 1.3% The Dow Jones Industrial Average fell 1.4% The Stoxx Europe 600 fell 1.4% The MSCI World Index fell 1.6% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.4% to $1.1574 The British pound fell 0.3% to $1.3369 The Japanese yen fell 0.4% to 158.35 per dollar Cryptocurrencies
Bitcoin rose 2.6% to $68,956.95 Ether rose 3% to $2,016.57 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.16% Germany’s 10-year yield advanced three basis points to 2.89% Britain’s 10-year yield advanced 11 basis points to 4.74% Commodities
West Texas Intermediate crude rose 9.4% to $99.47 a barrel Spot gold fell 1.8% to $5,077.88 an ounce ©2026 Bloomberg L.P.
