As bonds suffer, stocks record their worst day since March – US Market Wrap

A selloff in global bonds interrupted a rally in stocks, with concerns rising that central banks may be compelled to tighten policy to keep inflation under control amid persistently high oil prices. The S&P 500 fell 1.2%, marking the largest market decline since March. A chipmaker index, which had led a rally from wartime lows, fell 4%. US 10-year yields surpassed 4.5%, while Japan’s 30-year debt yields reached 4% for the first time. In the United Kingdom, a political crisis pushed long-bond rates to a 28-year high. The dollar extended its weekly gain. US crude settled above $105. With no end in sight to the Iran dispute, suspicion has grown that an effective closing of the Strait of Hormuz will exacerbate energy difficulties, perhaps driving inflation. Back-to-back reports this week indicated rising price pressures, leading traders to increase their bets that the Federal Reserve will hike interest rates.
Trump said he did not press his Chinese colleague Xi Jinping to pressure Tehran to reopen Hormuz, with no evidence of a breakthrough in the canal dispute. Foreign Minister Wang Yi told Xinhua that China believes the strait should be reopened as soon as feasible.