Crude Oil Market Turbulence Weighs on Global Stock Markets

The crude oil market is experiencing a significant impact on stock markets globally, with rising interest rates and crude oil futures contributing to the decline. The Dow Jones Industrial Average closed at $52,573.29, down $840.96 from the previous Friday, while the Nasdaq Composite Index fell to 26,333.04, down 173.95 points.

The market is bracing for potential rate hikes in September, with the probability of a hike increasing significantly. However, there remains substantial uncertainty regarding a second hike, which has led investors to price in expectations of at least one rate hike before October and two hikes within the year.

Long-term interest rates have risen amid growing expectations of an early U.S. interest rate hike, with the yield on the 10-year U.S. Treasury note closing at 4.97%, up 0.01 percentage points from the previous day.