Wall Street Flat, Markets Monitor Oil and Yields
US stocks tended to move slightly on Monday (May 18th) after setting records last week, with market participants monitoring the direction of oil prices and bond yields amid uncertainty surrounding the Middle East conflict. The S&P 500 rose 0.1%, the Nasdaq gained 0.3%, while the Dow Jones Industrial Average moved nearly flat.
Oil prices corrected from their highs, although they remained in the elevated zone. WTI futures fell about 1% and traded above US$103 per barrel, while Brent futures fell about 1% and remained above US$107 per barrel.
Today's movements come after the S&P 500 and Nasdaq hit new records last week, and the Dow briefly re-surfaced above 50,000. However, the rally faltered on Friday when government bond yields rose simultaneously across the globe, with the 30-year US Treasury yield hitting its highest level in about a year, the 30-year UK gilt yield rising to its highest level since the late 1990s, and long-dated Japanese bond yields also surging.
The rise in yields has been a major drag on discount-sensitive growth stocks, particularly technology stocks. The Nasdaq-100 fell 1.5% on Friday, its worst daily decline since March 27, after the yield surge pressured valuations.
On the geopolitical front, US-Iran tensions remain high, keeping oil prices high as the direction of the conflict remains unclear. President Donald Trump said on Sunday that Iran must "move immediately" or "there will be nothing left," while peace negotiations remain stalled. At the same time, the latest inflation data last week made the chances of the Fed cutting interest rates anytime soon seem slim, leaving equity markets vulnerable to movements in yields and energy. (arl)
Source: Newsmaker.id
