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Dow and Nasdaq Enter Correction as Oil Jumps and Yields Climb

An oil shock with higher yields forced a rethink of near-term rate cuts.

Overview

  • U.S. stocks, which sank Friday, ended a fifth straight losing week with the Dow and Nasdaq more than 10% below recent highs.
  • Brent crude surged above $110 to roughly $113 a barrel and the 10-year U.S. Treasury yield reached about 4.48%, stoking worries about inflation and growth.
  • Futures pricing from the CME FedWatch Tool now points to no Federal Reserve rate cuts until December 2027 and about a 51% chance of a hike by March 2027.
  • Tensions tied to the U.S.–IsraelIran war intensified, with reports of strikes inside Iran and a Wall Street Journal report that the Pentagon is weighing up to 10,000 additional troops.
  • Big Tech led the retreat as the “Magnificent Seven” shed more than $330 billion in market value in a single session, deepening the week’s losses.