Oil Tops $100 Per Barrel as Stocks Plummet and Yields Climb
The stock market fell on Wednesday as oil prices surged above $100 per barrel. The increase in oil prices pushed Brent crude to a sensitive level for the stock market, causing worries about global oil supply and Middle East tensions.
The S&P 500 energy index rose, but all other sector indexes fell. Apple dipped, while Treasury yields climbed to their highest since November 2023 after the Treasury Department announced it would buy up to $6 billion in 10-to-20-year government bonds.
Analysts had expected a larger purchase, with some expecting $8 billion to $10 billion. Higher yields on risk-free government bonds make it less attractive for investors to own stocks, leaving markets concerned about earnings expectations until third-quarter reporting season begins.