Oil Price Surge Fuels Wall Street Caution Ahead of Inflation Data
Wall Street experienced a soft start to the week as investors remained cautious ahead of US inflation data and elevated oil prices. The Dow Jones Industrial Average slid 1.2%, while the S&P 500 fell 0.5% and the Nasdaq Composite was down 0.2%. Brent crude oil futures rose as high as $99.50 a barrel, up 1.4% at $97.62 a barrel.
The elevated oil prices have fueled concerns about global fuel supplies after Iran-backed Houthi militants in Yemen attacked energy infrastructure in Saudi Arabia. This comes ahead of US inflation data, which will be crucial for the Federal Reserve's decision-making on interest rates next week.
US Treasury Secretary Scott Bessent said his programme to expand government bond buybacks aims to quell a fever in the bond market and return things to equilibrium. However, the yield on US 10-year treasuries rose 3 basis points to 4.81%, widening the premium to New Zealand's equivalent note.