Treasury yields hit a one-year high and crude prices surge, weighing on equities and commodities as geopolitical uncertainty persists.
Global markets turned risk-averse as Treasury yields surged, with the 10-year yield reaching a one-year high of 4.54%. Oil prices climbed, with WTI crude up 3% to $104.20 and Brent crude rising 2.4% to $108.30, driven by geopolitical tensions and supply concerns.
S&P 500 futures fell 1.1%, while European indices declined between 1.5% and 2.0%. The USD strengthened, pushing EUR/USD to a five-week low, while the AUD and NZD lagged. Gold and silver dropped sharply, with gold down over 2% to $4,548 and silver down 6% near $78.
The risk-off move followed an uneventful U.S.-China meeting, with no breakthroughs on trade or Iran, leaving investors disappointed. Markets also reacted to the UAE’s plan to accelerate an oil pipeline project to bypass the Strait of Hormuz.