Stocks Wobble as Rising Oil Keeps Yields Elevated – Europe Market Wrap
US stocks wavered and global bonds remained under pressure as higher oil prices kept traders cautious after days that saw rates at levels not seen in decades.
S&P 500 futures were little changed, while selling in chipmakers continued following a rout that drove the US benchmark to its worst day this month. Europe’s Stoxx 600 extended its losing run to a sixth day. While chip stocks in Asia tracked Tuesday’s US rout, the announcement of a $29 billion buyback helped SK Hynix erase a loss of as much as 8.3% in post-market trading.
Long-dated bonds erased early gains as Brent climbed toward $92 a barrel in a fourth consecutive daily advance. 30-year Treasury yields were little changed at 5.28%, while most European counterparts extended gains.
Traders remain cautious as concerns over loose fiscal policy and heavy borrowing by the biggest spenders on the AI buildout are expected to keep yields elevated. The threat of persistent inflation also continues to loom, with control of the Strait of Hormuz stuck in limbo.
The lack of a clear path to a resolution in the Middle East is keeping oil prices under upward pressure. Regional tensions intensified as the UAE said it was cutting all economic ties with Iran after accusing the Islamic Republic of firing ballistic missiles at its territory.
