Stocks Mixed as Crude Prices Surge, Bond Yields Reach Multi-Year Highs

The stock market experienced mixed results on Thursday, with some indexes falling while others rose. The Dow Jones Industrial Average dropped by 0.31%, reaching a one-week low, while the Nasdaq 100 Index increased by 0.03%. Higher crude oil prices contributed to inflation concerns and led to higher bond yields worldwide.

WTI crude oil prices surged over 2% after an Iranian official warned of possible expansion into the Indian Ocean if the US or Israel attacked again. However, prices later fell from their highs, sparking short covering in stocks. A Reuters report revealed that US and Iranian negotiators are exploring a phased deal to reopen the Strait of Hormuz and lift the blockade on Iranian ports.

The surge in crude oil prices pushed up bond yields, with the 10-year T-note yield reaching a 19-year high of 5.22%. The German 10-year Bund yield rose to a 17-year high of 3.62%, while Japan's 10-year JGB bond yield soared to a 30-year high of 3.09%.

Better-than-expected US economic news showed signs of strength in the labor market, with weekly jobless claims falling to a two-month low. New home sales rose to an eight-month high, supporting stocks. However, hawkish Fed comments from John Williams and Anna Paulson signaled support for additional rate hikes.