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August 20, 2026 - 15:46
3 minutes
(Bloomberg) — A rally in bonds fizzled out and stocks fell on bets the Treasury plan to curb borrowing costs is just a short-term fix, with a renewed surge in oil prices stoking worries about inflation.Treasury 30-year yields climbed back to levels seen just before the US announced it would boost buybacks of longer-dated debt. Brent oil hovered near $94 as President Donald Trump’s threat to crush the Iranian economy further clouded the prospect of ending the war. The S&P 500 extended this week’s losses. Walmart Inc. sank as its sales missed expectations. Bitcoin topped $70,000.“The announcement from Treasury Secretary Bessent yesterday seems to be creating less confidence in investors’ minds, not more confidence,” said Matt Maley at Miller Tabak. “This is not great given that we’re heading into a seasonal period that is frequently rough for the markets.”Meantime, Federal Reserve Bank of San Francisco President Mary Daly suggested the Treasury market is signaling that monetary policy is in a good place right now.“There’s a lot of discussion about our credibility there. I don’t see our credibility at risk,” Daly said Thursday in an interview on Bloomberg Television. “I also hear a lot about, should we be making preemptive cuts — or hikes, rather? And I don’t see a lot of evidence that that’s an urgent problem to solve.”Corporate Highlights:Super Micro Computer Inc. completed an independent investigation into its export compliance program, with the investigation team concluding the company’s senior management had no knowledge of an alleged diversion scheme involving Nvidia Corp. chips. Hudson River Trading signed a multiyear deal with CoreWeave Inc. to build new trading research and models using the tech company’s artificial-intelligence computing services. Deere & Co. raised the lower end of its annual profit outlook as a stabilizing agriculture sector points to a more pronounced rebound next year for farm machinery. Coty Inc. reported a drop in comparable sales and forecast a “transition” period in the current fiscal year as the beauty conglomerate works to turn around its business. Alibaba Group Holding Ltd.’s profit plunged more than 75% after the Chinese company ratcheted up quarterly capital spending to almost $10 billion, aiming to safeguard its position in a fiercely competitive global AI arena. Some of the main moves in markets:StocksThe S&P 500 fell 0.2% as of 9:45 a.m. New York time The Nasdaq 100 fell 0.2% The Dow Jones Industrial Average fell 0.7% The Stoxx Europe 600 fell 0.1% The MSCI World Index was little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1683 The British pound rose 0.2% to $1.3640 The Japanese yen fell 0.3% to 158.68 per dollar CryptocurrenciesBitcoin rose 3.8% to $71,646.18 Ether rose 2.5% to $2,274.48 BondsThe yield on 10-year Treasuries advanced five basis points to 4.70% Germany’s 10-year yield was little changed at 3.25% Britain’s 10-year yield advanced one basis point to 5.06% The yield on 2-year Treasuries advanced three basis points to 4.19% The yield on 30-year Treasuries advanced five basis points to 5.24% CommoditiesWest Texas Intermediate crude rose 2.6% to $88.02 a barrel Spot gold fell 0.6% to $4,488.66 an ounce ©2026 Bloomberg L.P.
