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US stocks and Treasuries caught some respite as oil prices eased, with traders waiting for the August US inflation report for the clearest signal yet on whether the Federal Reserve will hike interest rates next week. After surging yields and a rally in crude set the S&P 500 on course for its worst week since June, futures for the index rebounded 0.4%.
The U.S. 10-year Treasury yield creeps closer to 5% as Treasury Secretary Scott Bessent's market intervention disappoints, while crude prices move deeper into triple-digit territory. That's as President Trump doubles down on his pledge for a $5,000 “dividend” if Republicans win both the House and the Senate in the midterms.
South Korea's KOSPI and Japan's Nikkei 225 led a broad Asian selloff on Friday as oil surged above $108 a barrel and US bond yields moved dangerously close to 5%, reviving concerns that inflation could force central banks to tighten further. The KOSPI dropped more than 2.5%, extending Thursday's weakness, while the Nikkei 225 tumbled about 2.8%.
The new Federal Reserve chairman has not convinced the market that the Fed will be working to dampen inflation. Rates on consumer and business debt are already trending higher.
The 30-year Treasury bond yield recently reached its highest level since 2007, sparking concern about a stock market sell-off. Long-term investors shouldn't worry too much about short-term moves in bond yields.
Brent crude stays above $100, S&P futures climb
Baird Financial Group Inc. grew its position in shares of iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG) by 45.0% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 562,955 shares of the company's stock after buying an additional 174,694 shares during
South Korean stocks fell sharply on Thursday as Brent crude held above $100 a barrel, pushing the KOSPI back below the 7,000 mark just a day after it reclaimed the level for the first time in more than a month. The benchmark was down 1.28% at 6,961.23 by late morning in Seoul.