Wall Street indexes opened sharply lower on Friday, as inflation fears triggered by the Middle East conflict drove up Treasury yields and threatened to halt an AI-fueled rally.
Gold traded sharply lower early Friday as the dollar and yields climbed on concerns around inflation and concerns the rise in oil prices will force central banks to hike interest rates.
* Futures down: Dow 0.9%, S&P 500 1.2%, Nasdaq 1.7% * Applied Materials (AMAT) down after quarterly results. * Dexcom (DXCM) climbs after plans to revamp board panel with Elliott. By Ragini Mathur and Utkarsh Hathi. Wall Street indexes were headed for a sharply lower open on Friday, as inflation fears triggered by the Middle East conflict drove up Treasury yields and threatened to halt an AI-fueled rally.
Longer-dated Treasury yields climbed to their highest levels since May 2025 on Friday, as a spike in oil prices stoked fears that ongoing energy disruptions in the Middle East could further fuel inflation - which data this week showed had already surged in April.
Incoming Federal Reserve chief Kevin Warsh's plans to shrink the U.S. central bank's "footprint" in financial markets could be constrained by the rising federal debt and potentially lost luster of U.S. Treasuries, analysts said.
Wall Street indexes were headed for a sharply lower open on Friday, as inflation fears triggered by the Middle East conflict drove up Treasury yields and threatened to halt an AI-fueled rally. The yield on 10-year Treasury notes, a benchmark for global borrowing costs, hit 4.56% - its highest level since May 2025.
Societe Generale in its early Friday economic news summary pointed out: -- Risk off as United States Treasury yields accelerate, OIS pricing 80% chance of Federal Reserve rate hike by December. -- Federal Reserve's Williams: no need to raise or cut rates now, policy in a good place. -- Day ahead: U.S. industrial production.
* Futures down: Dow 0.7%, S&P 500 1.1%, Nasdaq 1.6% Futures tracking the Nasdaq and the S&P 500 tumbled more than 1% on Friday, with an AI-driven rally in U.S. stocks poised to stall, as Treasury yields jumped on concerns about higher inflation driven by the Middle East conflict.
The U.S. dollar is headed for its strongest weekly performance in more than two months on Friday as Treasury yields climbed and traders scaled back expectations for Federal Reserve rate cuts. The U.S. Dollar Index rose to 99.15 at 4:12 a.m. ET, gaining about 1.3% for the week. UUP is among the biggest beneficiaries of the rising dollar.
* MSCI EM FX, stocks eye sharpest weekly falls since early March. * Rising US Treasury yields pressure stocks, KOSPI falls 6% * Romania interest rate decision awaited. By Purvi Agarwal. Emerging market equities fell on Friday, led by declines in heavyweight Asian stocks, while currencies weakened against the dollar, setting them on track for losses in a week marked by the U.S.-China summit.
* Bond market selloff gathers pace. * US Treasury yields at one-year highs. * Euro zone bond yields rise, JGB yields hit record peaks. By Amanda Cooper. The global bond market limped to the end of a bruising week on Friday, as growing evidence of economic damage from the Iran war prompts investors to assume interest rates will rise faster than expected and growth will suffer.
The dollar was a touch higher and heading for its biggest weekly gain in more than two months, as mounting inflationary pressures from higher energy prices fuelled bets on a Federal Reserve rate hike this year. The dollar's climb on Friday came alongside rising U.S. Treasury yields?that have jumped to one-year peaks as traders ramped up bets that the Fed would need to raise rates this year.
The U.S. long bond has been in the spotlight recently, with the 30-year Treasury yield piercing 5% and nearing its highest level in two decades. The rise in long-dated yields - Wednesday's 30-year auction sold above 5% for the first time since 2007 - has grabbed headlines, but yields at the front end have actually spiked by even more.
Financial stocks rose late Thursday afternoon trading, with the NYSE Financial Index increasing 0.6% and the State Street Financial Select Sector SPDR ETF adding 0.7%. The Philadelphia Housing Index rose 0.4%, and the State Street Real Estate Select Sector SPDR ETF was down 0.6%. Bitcoin gained 2.7% to $81,396, and the yield for 10-year US Treasuries was decreasing 2 basis points to 4.46%. In e...
Financial stocks were higher late Thursday afternoon trading, with the NYSE Financial Index rising 0.6% and the State Street Financial Select Sector SPDR ETF adding 0.7%. The Philadelphia Housing Index rose 0.4%, and the State Street Real Estate Select Sector SPDR ETF was down 0.6%. Bitcoin gained 2.7% to $81,396, and the yield for 10-year US Treasuries was decreasing 2 basis points to 4.46%. I...
Financial stocks were higher Thursday afternoon trading, with the NYSE Financial Index rising 0.5% and the State Street Financial Select Sector SPDR ETF adding 0.6%. The Philadelphia Housing Index was climbing 0.8%, and the State Street Real Estate Select Sector SPDR ETF was down 0.4%. Bitcoin gained 2.6% to $81,414, and the yield for 10-year US Treasuries was decreasing 3 basis points to 4.45%...
Financial stocks were advancing in Thursday afternoon trading, with the NYSE Financial Index rising 0.7% and the State Street Financial Select Sector SPDR ETF adding 0.6%. The Philadelphia Housing Index was climbing 0.8%, and the State Street Real Estate Select Sector SPDR ETF was down 0.4%. Bitcoin gained 2.6% to $81,414, and the yield for 10-year US Treasuries was decreasing 2.8 basis points ...
* Treasury yields retreat as oil prices drop and technical support attracts buyers. * Inflation concerns persist after strong U.S. producer price data and Middle East conflict. * Retail sales rise, jobless claims steady, Xi warns Trump on Taiwan tensions. By Karen Brettell.
Gold edged higher early Thursday as treasury yields eased after a report showed U.S. retail-sales growth slowed in April. Gold for June delivery was last seen up $4.00 to US$4,710.70. The U.S. Census Bureau reported retail sales roes by 0.5% last month, down from a revised 1.6% in March but matching expectations according to Marketwatch.
* Dollar supported by rising U.S. Treasury yields and Fed rate hike expectations. * Trump-Xi summit focuses on trade progress, Taiwan tensions highlighted by Xi. * U.S. inflation data boosts rate hike bets, Fed Chair Warsh seen tightening policy. By Rae Wee and Amanda Cooper.
Investors are bracing for U.S. Treasury yields to stay higher longer, skeptical that incoming Federal Reserve Chair Kevin Warsh will be able to tame inflation stoked by surging oil prices during a prolonged Middle East conflict. Long-dated yields, including those on benchmark 10-year notes, have spiked as investors demand greater compensation for inflation risk as higher energy prices bite.
Strong demand for technology stocks lifted equity indexes around the world on Thursday, while the dollar rose after economic data and investors awaited the outcome of a U.S.-China summit. In bonds, benchmark 10-year Treasury yields edged down after hitting an 11-month high as U.S. government debt found buying interest at key technical levels.
Financial stocks fell Wednesday with the NYSE Financial Index dropping 0.8% and the State Street Financial Select Sector SPDR ETF shedding 1.1%. The Philadelphia Housing Index declined 1.4%, and the State Street Real Estate Select Sector SPDR ETF lost 0.8%. Bitcoin fell 1.2% to $79,517, and the yield for 10-year US Treasuries rose 1.8 basis points to 4.48%. In economic news, the US producer pri...
Financial stocks were lower in late Wednesday afternoon trading, with the NYSE Financial Index decreasing 0.8% and the State Street Financial Select Sector SPDR ETF shedding 0.9%. The Philadelphia Housing Index was falling 1.4%, and the State Street Real Estate Select Sector SPDR ETF was down 0.8%. Bitcoin was declining 1.2% to $79,517, and the yield for 10-year US Treasuries rose 1.8 basis poi...
* Producer prices post biggest gain since early 2022, fueling inflation concerns. * BCA Research's Ryan Swift says data unlikely to prompt Fed rate hikes. * Treasury sees ok demand for $25 billion in 30-year bonds. By Karen Brettell.
Financial stocks were lower in Wednesday afternoon trading, with the NYSE Financial Index decreasing 0.7% and the State Street Financial Select Sector SPDR ETF shedding 1%. The Philadelphia Housing Index was falling 1.8%, and the State Street Real Estate Select Sector SPDR ETF was down 0.7%. Bitcoin was declining 1.4% to $79,278, and the yield for 10-year US Treasuries was rising 2 basis points...
Financial stocks were lower in Wednesday afternoon trading, with the NYSE Financial Index decreasing 0.7% and the State Street Financial Select Sector SPDR ETF shedding 1%. The Philadelphia Housing Index was falling 1.8%, and the State Street Real Estate Select Sector SPDR ETF was down 0.7%. Bitcoin was declining 1.4% to $79,278, and the yield for 10-year US Treasuries was rising less than one ...
* Hot U.S. inflation reading lifts Treasury yields. * Fed rate cut bets evaporate; odds for December hike rise. * Iran peace deal hopes dwindle; Trump-Xi meeting in focus. By Lucy Raitano and Jiaxing Li.
* Asia FX including yen under pressure. * Food prices face another shock after Russia-Ukraine conflict. * Analysts watching gasoline prices. * US Treasury yields also in focus. By Karin Strohecker and Dhara Ranasinghe.
The dollar held near a one-week high on Wednesday as risk sentiment soured after a hot U.S. inflation reading sent Treasury yields higher, and oil inched up on renewed Middle East uncertainty. The euro stood at $1.1735 and the sterling traded at $1.3532, both down roughly 0.05% against the greenback in early Asia trades.
Financial stocks advanced in late Tuesday afternoon trading, with the NYSE Financial Index rising 0.4% and the State Street Financial Select Sector SPDR ETF adding 0.9%. The Philadelphia Housing Index was down 1.1%, and the State Street Real Estate Select Sector SPDR ETF was up 0.2%. Bitcoin was falling 1.2% to $80,732, and the yield for 10-year US Treasuries climbed 5.3 basis points to 4.46%. ...
Financial stocks were higher in late Tuesday afternoon trading, with the NYSE Financial Index rising 0.4% and the State Street Financial Select Sector SPDR ETF adding 0.9%. The Philadelphia Housing Index was down 1.1%, and the State Street Real Estate Select Sector SPDR ETF was up 0.2%. Bitcoin was falling 1.2% to $80,732, and the yield for 10-year US Treasuries climbed 5.3 basis points to 4.46...
Financial stocks were higher in Tuesday afternoon trading, with the NYSE Financial Index rising 0.4% and the State Street Financial Select Sector SPDR ETF adding 0.9%. The Philadelphia Housing Index was down 0.9%, and the State Street Real Estate Select Sector SPDR ETF was up 0.1%. Bitcoin was falling 1.8% to $80,257, and the yield for 10-year US Treasuries climbed 4.5 basis points to 4.455%. I...
Financial stocks were advancing in Tuesday afternoon trading, with the NYSE Financial Index rising 0.4% and the State Street Financial Select Sector SPDR ETF adding 0.9%. The Philadelphia Housing Index was down 0.9%, and the State Street Real Estate Select Sector SPDR ETF was up 0.1%. Bitcoin was falling 1.8% to $80,257, and the yield for 10-year US Treasuries climbed 4.5 basis points to 4.455%...
US equity indexes fell in Tuesday's midday trading as a hotter-than-expected inflation print for April hit technology and consumer discretionary shares. The Nasdaq dropped 1.2% to 25,939.2, with the S&P 500 down 0.8% to 7,356.5 and the Dow Jones Industrial Average lower by 0.5% to 49,435.8. Technology and consumer discretionary sectors led the decliners.
National Bank said it remains constructive on the shorter-term Government of Canada sovereign bond yields as tighter policy is pushed back relative to the market's expected timeline. While the bank stated it is skeptical that longer-term yields will moderate meaningfully, that's more a function of global dynamics.
* Oil price increase and Middle East tensions drive yields higher. * April CPI shows inflation remains elevated with higher energy and AI spending. * Strong jobs data dims hopes for near-term Fed rate cuts. By Karen Brettell.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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