Stocks Stabilize as Crude Oil Prices and Bond Yields Ease

Stocks have stabilized after crude oil prices and bond yields eased. The S&P 500 Index ($SPX) (SPY) is up by +0.16% today, while the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.20%. E-mini S&P futures (ESU26) are up +0.10%, and September E-mini Nasdaq futures (NQU26) are down -0.25%.

The recovery comes after a tumultuous overnight session, where stock index futures initially moved lower due to US-Iran hostilities pushing crude oil prices to a 6-week high and the 10-year T-note yield up to a 2.75-year high of 4.82%. However, US Energy Secretary Wright's statement that over 17 million barrels of oil went through the Strait of Hormuz on Monday eased supply concerns, causing crude prices to retreat.

This shift in sentiment has also impacted bond yields, with the 10-year T-note yield falling -0.8 bp to 4.790%. The decline in yields is a positive sign for stocks, as lower interest rates can boost economic growth and increase investor appetite for riskier assets.