US Stocks Halt Selloff as Rising Oil Lifts Yields: Markets Wrap
(Bloomberg) — US stock futures staged a modest rebound even as flaring tensions in the Middle East sent oil prices and bond yields higher.
S&P 500 contracts rose 0.3% while those for the Nasdaq 100 climbed 0.7%, signaling a halt to the selloff that was driven by technology stocks. Brent advanced 4.1% to nearly $97 a barrel after Israel retaliated against Iranian missile attacks. Treasuries fell, with the 10-year yield up three basis points to 4.56% as traders added to bets that the Federal Reserve will hike interest rates.
While US stocks found their footing, Friday’s rout still left its mark elsewhere. Asia’s benchmark dropped 3.2% as South Korea’s Kospi tanked 8.3%. Europe’s Stoxx 600 fell 0.4%, with losses in rate-sensitive shares such as construction and retail stocks outpacing those in tech.
Investors are starting the week grappling with a host of negatives: renewed fighting in the Middle East, inflation pressures that are bolstering the case for rate hikes and worries over whether the blistering artificial-intelligence rally has run too far.
A flood of new shares from companies looking to fund their AI ambitions, including SpaceX’s offering that concludes this week, is also raising questions about whether there will be enough buyers to soak them all up.
“There are three key potential risks to stock markets at the moment — Hormuz remaining closed, inflation and rates rising faster than expected and investors taking profits in assets which have performed spectacularly well,” said Michael Bell at RBC Bluebay Asset Management. “Some hedges and diversification against all three risks probably make sense.”
Chipmakers that were the hardest hit in Friday’s selloff attracted dip buyers in premarket trading. Marvell Technology Inc. rose 7.7% while Micron Technology Inc. advanced almost 3.7%. Nvidia Corp. led gains among the Magnificent Seven heavyweights.
What Bloomberg Strategists Say…
“The equity market’s two key drivers, AI and energy, have both turned negative, pointing to downside for stocks. While the weakness in tech looks more like a correction than the start of a bear market, investors are heading into two weeks packed with event risk just as oil prices are moving higher again. It is difficult to argue for adding risk in the near term.”
— Skylar Montgomery Koning, macro strategist. For the full analysis, click here.
Bitcoin climbed 2.6% after falling below the $60,000 mark on Friday for the first time since Donald Trump won reelection in 2024. Strategy Inc. Chairman Michael Saylor hinted at further purchases. The dollar was little changed
Israel and Iran exchanged missile strikes on Monday despite President Donald Trump’s calls for both sides to stop fighting and give peace talks a chance. The exchange is one of the most serious tests of a ceasefire that took effect on April 8 to halt fighting involving the US, Israel and Iran.
It comes as the US and Iran appear to be making little progress toward an interim agreement to end the war, even as Trump has repeatedly said a deal is near. “Israel and Iran must immediately stop ‘shooting’,” Trump said in a social media post.
Traders are likely to remain cautious in the buildup to Wednesday’s release of US inflation data for May. The consumer price index is expected to jump by 4.2% from a year earlier — the highest rate in more than three years.
On Monday, interest-rate swaps indicated traders expect at least one quarter-point Fed hike by the December policy meeting with a 20% chance of another.
“I’d expect dip buyers to be patient, not quick,” said Hassan Raza, portfolio manager at CG Asset Management. “Nobody wants to be long ahead of a CPI print that confirms energy is bleeding into core.”
Corporate Highlights:
Intesa Sanpaolo SpA offered to buy Banca Monte dei Paschi di Siena SpA for €30.6 billion ($35.3 billion) in a move that’s set to spur a new phase of dealmaking in Italian finance. A consortium of French telecommunications companies have agreed to buy billionaire Patrick Drahi’s SFR in a deal that values the country’s second-largest mobile carrier at €20.4 billion ($23.5 billion) including debt. Airbus SE has been notifying some customers of delays on A320neo series jets that are due to be delivered in 2027 and 2028, according to people familiar with the matter. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.4% as of 11 a.m. London time S&P 500 futures rose 0.3% Nasdaq 100 futures rose 0.7% Futures on the Dow Jones Industrial Average fell 0.1% The MSCI Asia Pacific Index fell 3.2% The MSCI Emerging Markets Index fell 3.6% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1511 The Japanese yen rose 0.2% to 160.00 per dollar The offshore yuan was little changed at 6.7866 per dollar The British pound fell 0.1% to $1.3325 Cryptocurrencies
Bitcoin rose 2.7% to $63,504.8 Ether rose 2.7% to $1,671 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.56% Germany’s 10-year yield advanced two basis points to 3.06% Britain’s 10-year yield advanced four basis points to 4.95% Commodities
Brent crude rose 4.1% to $96.90 a barrel Spot gold fell 0.8% to $4,293.03 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling, James Hirai and Subrat Patnaik.
©2026 Bloomberg L.P.
