Oil Prices Fall Below $90 Amid Market Volatility

Global markets experienced a calm day on August 25 as oil prices fell below $90 per barrel, supporting the US stock market and triggering gains in US government bonds. The decline in oil prices was attributed to investors assessing the implications of the US Treasury's decision to increase buybacks of long-term bonds.

The renewed escalation in the trade dispute between the United States and Canada also contributed to the market volatility. Reciprocal tariffs increased risks to the North American trade agreement, which could have broader negative consequences for the global economy.

The S&P 500 and Dow Jones each added 0.3%, while the Nasdaq climbed 0.7%. The technology sector gained 1%, while the energy sector lost 1.7%.