Overview
- The Dow is more than 5% below its February 10 record and the S&P 500 is down 1.5% this month, reversing gains the president has highlighted.
- The 10-year Treasury yield has climbed to about 4.22% after its biggest weekly jump since April, lifting borrowing costs across the economy.
- The US dollar index has rebounded 1.7% this month and is now up nearly 1% for the year, clashing with the White House’s preference for a weaker currency even as Treasury backs a strong-dollar stance.
- Oil supply risks tied to fighting near the Strait of Hormuz have roiled energy markets and shipping, prompting US political-risk insurance to support Gulf maritime trade.
- Strategists say the conflict’s duration will determine whether inflation pressures persist and whether the Federal Reserve delays rate cuts, keeping market volatility elevated.