Treasuries Sink as Oil Jump Stokes Inflation Fears: Markets Wrap
(Bloomberg) — Wall Street’s worries about an inflation resurgence sent bonds slumping as oil surged amid an escalating war in the Middle East, with traders trimming bets on rate cuts. The dollar and gold climbed. Stocks pared losses.
Also weighing on Treasuries were figures showing manufacturing expanded, with input prices soaring at the fastest pace since 2022. Ten-year yields headed toward their biggest advance since October. The S&P 500 pared most of a slide that earlier topped 1% as energy and defense firms rallied while the software group bounced. Airlines tumbled.
As tanker traffic all but halted through the Strait of Hormuz and a big refinery in Saudi Arabia stopped, West Texas Intermediate crude soared 6.5%. Diesel futures jumped more than fifth at one point. In Europe, liquefied natural gas surged after Qatar halted output.
Uncertainty about oil prices may play a big role in determining broader market sentiment, according to Chris Larkin at E*Trade from Morgan Stanley.
“There are more questions than answers right now, but a stabilizing energy picture could have a positive ripple effect, while concerns about a longer-term disruption could have the opposite,” he said.
US-Israeli strikes on Iran quickly escalated into a broader conflict, extending a flight away from riskier assets. President Donald Trump said the attacks could last for weeks and called on the nation’s leaders to capitulate, while the Islamic Republic’s security chief ruled out negotiations.
Corporate Highlights:
Anthropic PBC’s artificial intelligence chatbot Claude and related consumer-facing applications went down on Monday, with the startup saying it has been grappling with “unprecedented demand” for its services over the past week. Apple Inc. rolled out the iPhone 17e, the latest version of its lower-end smartphone, and a faster version of the iPad Air, kicking off a wave of new products. Nvidia Corp. agreed to invest $4 billion in two companies that develop data center optics that are essential for artificial intelligence systems. BlackRock Inc.’s Global Infrastructure Partners LP and EQT AB agreed to buy AES Corp. for about $10.7 billion in cash as the market heats up for power plant developers that can provide electricity for AI data centers. Elevance Health Inc. faces sanctions from Medicare that will block its plans from enrolling new Medicare Advantage members by the end of this month. UniQure NV plunged after US regulators said the company should conduct another study of its gene therapy for Huntington’s disease before it’s approved. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.4% as of 10:41 a.m. New York time The Nasdaq 100 fell 0.3% The Dow Jones Industrial Average fell 0.5% The Stoxx Europe 600 fell 1.8% The MSCI World Index fell 0.9% Currencies
The Bloomberg Dollar Spot Index rose 0.8% The euro fell 1% to $1.1694 The British pound fell 0.8% to $1.3379 The Japanese yen fell 1.1% to 157.75 per dollar Cryptocurrencies
Bitcoin rose 5.6% to $69,358.16 Ether rose 6.3% to $2,051.54 Bonds
The yield on 10-year Treasuries advanced 10 basis points to 4.04% Germany’s 10-year yield advanced seven basis points to 2.71% Britain’s 10-year yield advanced 14 basis points to 4.37% Commodities
West Texas Intermediate crude rose 6.6% to $71.47 a barrel Spot gold rose 1.1% to $5,339.04 an ounce ©2026 Bloomberg L.P.
