Stocks Crash Amid Soaring Bond Yields and Oil Prices

Stock markets fell on Wednesday as oil prices rose sharply and US bond yields jumped due to inflation fears. The North Sea Brent crude price surged 3.86% to $103.08 per barrel, while West Texas Intermediate (WTI) crude gained 1.81% to reach $92.16 per barrel.

The benchmark US 10-year Treasury yield rose to 5.11%, its highest level since 2007. This increase in yields and oil prices weighed on the markets, causing the Dow Jones to fall 0.68%, the S&P 500 to slide 0.75%, and the Nasdaq to shed 1.13%.

Angelo Kourkafas of Edward Jones attributed the market's decline to the notion that the Federal Reserve will continue to hike rates, not just once but potentially repeatedly. John Kilduff of Again Capital noted that hopes for a deal to get Gulf oil and gas flowing freely through the Strait of Hormuz were dashed.