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Oil shock lifts Treasury yields and pressures growth stocks
Brent and WTI settled near $90.5 and $85.8, pushing the US 10-year yield to 4.768% and raising odds of a September rate increase to about 65%.
Forexlive reports a renewed oil shock is reshaping intraday trading across rates, equities, and gold, with higher energy prices stoking inflation concerns and lifting Treasury yields.
At Monday’s settlement, Brent crude was around $90.49 and WTI around $85.76, while the US 10-year Treasury yield rose to 4.768%, its highest level since January 2025.
Forexlive says the key issue is not only geopolitical risk, but the possibility that sustained higher energy costs keep inflation elevated and force the Federal Reserve to maintain tighter policy, or even raise rates again.
The outlet also flags Nasdaq futures testing the 29,385 area, noting long duration growth stocks tend to be sensitive to rising yields, and that a sustained break below 29,385 would strengthen a bearish “sell the rally” setup.
Latest closeGold $4,509.30 ▲0.7%|WTI crude $86.62 ▲3.9%|Brent $88.80 ▼0.6%