Stocks rose Friday and government yields held their losses after comments from top Federal Reserve officials tempered fears that the central bank would hike interest rates at its meeting this month.However, traders remain on edge and oil prices ticked higher again as the United States and Iran exchanged fire following a flare-up in their six-month-long conflict last weekend.
Markets have been shaken this week as the Middle East crisis sent crude surging around 10 percent, fanning inflation concerns and putting pressure on central banks to raise interest rates.
That turn sent the cost of government debt to multi-decade highs, with analysts also pointing to a surge in corporate borrowing to fund AI investment and concerns about government finances.
The panic eased slightly after US President Donald Trump indicated the latest bombing campaign against Iran would be short-lived but comments from New York Fed boss John Williams and governor Christopher Waller provided the most relief.
Waller said Thursday that his call for the September 16 policy move would be guided by incoming data and that a softer reading would edge him towards holding rates.
