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U.S. and Europe stocks bounce as oil slips, but yields near highs

Brent crude fell 4.0% to $96.37 a barrel while 30-year U.S. Treasury yields moved toward their highest level since 2007 amid tariff and inflation-rate-hike concerns.

Reported · Written up by our desk · Trade & Tariffs

U.S. and European markets found some relief from this week’s lows on Friday as oil prices pulled back, but global bond yields remained near multi-decade highs amid persistent inflation and rate-hike worries, Reuters reported. The news that the U.S. administration plans higher tariffs on goods from 60 trading partners did little to ease those concerns, with 30-year Treasury yields edging toward their highest level since 2007 and Germany’s 10-year Bund yield holding near its highest since 2011.

Stocks were mostly higher, with the Dow Jones Industrial Average up 0.5%, the S&P 500 about 0.4% higher, and the Nasdaq Composite little changed, according to Reuters. In Europe, the STOXX 600 rose 0.8% after a more than 1% drop in the prior session.

Oil slid as Brent fell 4.0% to $96.37 a barrel after jumping 7% overnight to a two-month high of $102, Reuters said. The report also pointed to risk to global oil flows from Iran-aligned Houthi attacks on Saudi tankers in the Red Sea and Iran’s near-closure of the Strait of Hormuz.

Investors stayed focused on central bank policy expectations, with markets pricing a one-in-three chance of a Federal Reserve rate hike as soon as next week, a shift from a week ago, Reuters noted. The ECB left rates unchanged on Thursday, while a September rate hike was about 70% priced in.

Latest closeBrent $86.96 ▼2.3%|S&P 500 7,798.99 ▲0.7%|Nasdaq Comp. 26,803.03 ▲0.8%

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