Stocks Churn as Oil Advance Boosts Treasury Yields: Markets Wrap
(Bloomberg) — A rally in oil prices left stocks wavering while bond yields rose, with trader anxiety building just days ahead of key inflation reports.
The lack of a deal to revive the Strait of Hormuz drove Brent crude to $86. Higher energy costs stoked concerns the Federal Reserve will have to raise interest rates this year despite the recent slowdown in the jobs market. The S&P 500 fluctuated near its all-time highs. The dollar gained. The yen fell, erasing half of the gains triggered by the US-Japan intervention.
President Donald Trump signaled he’s prepared to let economic pressure on Iran build rather than launch fresh strikes to force a reopening of the Strait of Hormuz, even as the Islamic Republic reiterated that the conditions still aren’t in place to allow free passage through the waterway.
“We are just watching Iran with its huge inflation and the fact they have no money,” Trump told Axios in an interview on Sunday, saying that a US naval blockade of the country was deepening its financial woes. “We are low-keying it.”
While stocks had seen a burst of enthusiasm about a possible reopening of Hormuz, markets may be less likely to respond positively to vague reports about progress in talks, said Chris Larkin at E*Trade from Morgan Stanley.
“The jobs report may have eased some anxieties about a Fed rate hike next month, but those concerns could hit new highs without cooler-than-expected inflation numbers this week,” Larkin added.
Prices paid by US consumers probably inched up marginally last month after falling for the first time in six years, a welcome tempering in recent war-driven inflationary pressures.
The closely watched consumer price index is seen rising 0.1% in July following a 0.4% decline in the prior month, based on the median projection in a Bloomberg survey of economists ahead of Wednesday’s Bureau of Labor Statistics release.
“We would note that even a low CPI print, might not be enough to negate the concerns of the Fed’s hawks, which seem to focus on the durability of above-target inflation for the past four years,” said Thierry Wizman at Macquarie Group.
Corporate Highlights:
Intel Corp. is seeking to raise $15 billion worth of new stock in what may be its first public share sale since it listed in 1971, capitalizing on renewed interest in its prospects driven by the AI data center boom. Microsoft Corp. is planning to “significantly” increase production of its next-generation AI chips, the Information reported. Apple Inc. was downgraded to an underperform rating at Jefferies, in the latest example of growing bearishness toward the company. GameStop Corp., led by Chief Executive Officer Ryan Cohen, is considering withdrawing its $56 billion bid for eBay Inc., according to people familiar with the matter. Boeing Co. will sell several of its units that specialize in developing technologies for flying taxis and drones to Archer Aviation Inc. as the US planemaker focuses on its core commercial and defense units. Some of the main moves in markets:
Stocks
The S&P 500 was little changed as of 11 a.m. New York time The Nasdaq 100 fell 0.1% The Dow Jones Industrial Average was little changed The Stoxx Europe 600 was little changed The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro was little changed at $1.1551 The British pound rose 0.2% to $1.3520 The Japanese yen fell 0.8% to 158.96 per dollar Cryptocurrencies
Bitcoin fell 0.8% to $64,584.73 Ether fell 1.4% to $1,892.36 Bonds
The yield on 10-year Treasuries advanced four basis points to 4.68% Germany’s 10-year yield advanced four basis points to 3.18% Britain’s 10-year yield advanced six basis points to 4.98% Commodities
West Texas Intermediate crude rose 3.4% to $80.81 a barrel Spot gold was little changed ©2026 Bloomberg L.P.
