Stocks Surge as Crude Prices and Bond Yields Fall

Stocks are pushing higher today as crude oil prices and bond yields fall. The S&P 500 Index SPY is up by +0.86%, while the Dow Jones Industrial Average DIA is up by +0.36% and the Nasdaq 100 Index QQQ is up +1.47%. E-mini S&P futures (ESU26) are up +0.85%, and September E-mini Nasdaq futures (NQU26) are up +1.43%. The drop in crude oil prices, down more than -1% today, has eased inflation concerns and is boosting hopes that the Fed can keep inflation under control.

The 10-year T-note yield is down -6 bp to 4.95%, as a result of the Fed's +25 bp rate hike on Wednesday reassuring investors that the central bank is determined to tame inflation. Weekly jobless claims unexpectedly fell to an 8-week low, but housing starts and building permits fell more than expected.

October WTI crude oil prices are down by more than -1% today due to signs that Middle East supply disruptions are easing. US Energy Secretary Wright said 18 million bbl of crude oil and refined products went through the Strait of Hormuz on Tuesday, alleviating global supply concerns.