Stocks Stall as US Threats Against Iran Boost Crude – Europe Market Wrap
Stocks churned and bond yields ticked higher as US economic threats against Iran sparked a fresh advance in crude oil prices.
Futures on the S&P 500 were little changed after the US benchmark closed at a new record Thursday. Europe’s Stoxx 600 slipped 0.1%. US 10-year yields rose 2 bps to 4.66%. Brent crude was up 1% near $88 a barrel.
Markets are ending the week on a muted note after Treasury Secretary Bessent promised unprecedented “economic isolation” for Iran and a “one-two punch” that includes the continued blockade of the country’s ports. The latest concerns about the Middle East offset a comeback in the AI trade that’s helped put the S&P 500 on track for its third weekly gain in a row.
After an inflation print and producer price data that prompted investors to pare their bets on Fed rate hikes earlier in the week, US retail sales data will be in focus later Friday for more clues on policy ahead of next month’s meeting. Despite the softer inflation data this week, the US sold 30-year bonds at the highest yield in a quarter century Thursday, underscoring the premium investors are demanding to finance the nation’s deficits.
South Korea’s Kospi, a bellwether for AI investment, added over 2% Friday, bringing its weekly gain to 11% and snapping a seven-week losing streak, with Samsung and SK Hynix both advancing more than 15% over the past five days.
