Trump's 'Short-Lived' Iran Strikes Boost Stocks, Ease Bond Yields

Stocks rose and bond yields eased on Thursday after US President Donald Trump hinted that the latest Iran strikes would be short-lived, easing concerns about a prolonged conflict in the Strait of Hormuz. The flare-up had sent crude prices rallying as much as 10 percent earlier in the week, but Brent and West Texas Intermediate contracts pared their gains on Wednesday and edged lower on Thursday.

The drop in oil prices was accompanied by a decrease in yields on 10-year US Treasuries and Japanese government bonds of the same length. The softening in bond yields helped support stocks, with all three main US indexes rising and Asian markets following suit.

Weak US economic data also contributed to the positive market sentiment, as August private jobs creation came in below expectations and job openings missed forecasts. This eased pressure on the Federal Reserve to hike borrowing costs ahead of its September 16 rate decision.