Stocks Join Bonds Lower as Oil Keeps Climbing: Markets Wrap
(Bloomberg) — A renewed rally in oil drove stocks and bonds lower ahead of the Federal Reserve decision, with traders looking for clues about the economic fallout of the Iran war.
Caution prevailed on Wall Street as a US-Iran standoff over the Strait of Hormuz dragged on, lifting Brent crude to around $117. Benchmark 10-year yields hit 4.4% on concern that elevated energy prices will curb the Fed’s ability to cut rates. Meantime, giants Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp. will report results after the close and details on artificial-intelligence spending will be key.
“If AI spending is increased and the Fed sees energy costs as transitory, expect a rally. If we hear caution, we could see some interesting downside volatility,” said veteran strategist Louis Navellier.
The US signaled it would stick with a naval blockade of Iranian ports as it tries to choke-off Tehran’s oil exports and force it back to the negotiating table. The blockade lies at the heart of the impasse, with the Islamic Republic insisting it won’t restart negotiations or reopen the Strait of Hormuz as long as the naval restrictions stay in place.
A jump in energy prices and disruption to supply chains stemming from the war have raised the possibility of stronger inflation and weaker economic growth, prompting policymakers to signal they’re comfortable in wait-and-see mode. Officials will release their statement at 2 p.m. in Washington, with Jerome Powell’s press conference to follow 30 minutes later.
“Elevated oil prices, trading above $110 per barrel, are adding to inflationary pressures, lifting Treasury yields and complicating the policy backdrop,” said Fiona Cincotta at City Index. “This creates a challenging environment for the Fed, requiring a balance between inflation risks and growth concerns.”
Corporate Highlights:
Seagate Technology Holdings Plc gave a fourth-quarter forecast that was much stronger than expected. It also reported third-quarter results that beat expectations. Robinhood Markets Inc. reported net revenue for the first quarter that missed the average analyst estimate. Avis Budget Group Inc. reported a worse-than-expected quarterly loss the morning after a major investor revealed it sold a portion of its stake, sending shares on a roller coaster ride to start the day’s trading. Visa Inc. climbed as the company posted what analysts called “one of the cleanest” quarters in years. Starbucks Corp. reported better-than-expected results and said it now sees comparable sales rising at least 5% this year, up from its previous view of 3% or more. Booking Holdings Inc. cut its outlook for the full year as travel demand suffers from the conflict in the Middle East. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.2% as of 10:02 a.m. New York time The Nasdaq 100 rose 0.1% The Dow Jones Industrial Average fell 0.4% The Stoxx Europe 600 fell 0.6% The MSCI World Index fell 0.3% Currencies
The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.2% to $1.1686 The British pound fell 0.3% to $1.3476 The Japanese yen fell 0.4% to 160.18 per dollar Cryptocurrencies
Bitcoin rose 0.3% to $76,669.85 Ether was little changed at $2,297.43 Bonds
The yield on 10-year Treasuries advanced five basis points to 4.40% Germany’s 10-year yield advanced two basis points to 3.09% Britain’s 10-year yield advanced five basis points to 5.05% The yield on 2-year Treasuries advanced six basis points to 3.89% The yield on 30-year Treasuries advanced four basis points to 4.98% Commodities
West Texas Intermediate crude rose 5% to $104.90 a barrel Spot gold fell 1.6% to $4,523.62 an ounce ©2026 Bloomberg L.P.
