Brent Breaks $101: Stocks Plummet Amid Inflation Concerns

Stocks plummeted for a third consecutive day as Brent crude broke through the $101 per barrel mark, pushing Treasury yields to their highest levels since late 2023 and causing concern about the inflation outlook.

The move in oil prices has significant implications for markets, which had been debating whether the Federal Reserve would hike interest rates next week. With stronger employment data, persistent inflation, and now another energy shock, the door is open again for a rate hike, according to some economists.

Meanwhile, the yen continues to appreciate as investors lean into Bank of Japan tightening and repatriation. This could quietly bleed out global risk assets without a dramatic blowup, potentially affecting equity internals already starting to fray.