On Thursday, the S&P 500 Index closed down -0.02%, while the Dow Jones Industrial Average fell -0.31%, reaching a one-week low. The Nasdaq 100 Index managed a slight increase of +0.03%. Notably, WTI crude oil prices rose over +2% amid escalating geopolitical tensions, contributing to inflation concerns and driving bond yields to multi-year highs.
Higher crude prices triggered a sell-off in global bond markets, with the US 10-year Treasury yield climbing to 5.22%, the highest in 19 years. In contrast, US economic indicators showed signs of resilience, with weekly jobless claims falling to a two-month low of 197,000, and new home sales in August rising to an eight-month high of 684,000, exceeding expectations.
Markets are forecasting a 71% likelihood of a 25 basis point rate hike at the Federal Reserve’s next meeting on October 27-28, influenced by hawkish comments from Fed officials regarding ongoing inflationary pressures. In overseas markets, the Euro Stoxx 50 declined -0.43%, while China’s Shanghai Composite fell -1.22% and Japan’s Nikkei-225 saw a 0.76% rise.
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