Crude Oil Surge Sends Stocks Plunging Amid Rising Inflation Fears
The S&P 500 Index fell 0.58% on Thursday, while the Dow Jones Industrial Average dropped 0.60%, and the Nasdaq 100 Index plummeted 1.08%. The sharp decline in stocks was attributed to soaring energy prices, which boosted global bond yields and increased inflation expectations.
WTI crude oil surged more than 6% on Thursday, reaching a 3.5-month high, amid fears of a prolonged US-Iran conflict and limited crude supplies from the Middle East.
The sharp rise in crude prices pushed the 10-year UK Gilt yield to a 19-year high of 5.38%, while the 10-year German Bund yield skyrocketed to a 17-year high of 3.51%. The 10-year T-note yield also rose to a 2.75-year high of 4.96%.
The escalating trade war between the US and Canada further weighed on market sentiment, with the US imposing tariffs on hundreds of Canadian goods in retaliation for Canada's tariffs on US imports.