By Joe Stonor and Adam Whittaker
Stocks slid and 30-year Treasury yields hit a post-financial crisis high, as a hot inflation print and a fresh rise in oil prices dragged market sentiment.
Brent crude oil hovered around $105 a barrel as hostilities between the U.S. and Iran continued to escalate, while producer-price index data showed prices rising in August, prompting investors to bump up their bets on the Federal Reserve raising its policy rate next week. Markets are now pricing a 69.6% chance probability of a quarter-point rate hike, according to LSEG.
Treasury yields rose to a spate of new multi-year highs as the commencement of Treasury Secretary Scott Bessent's repurchase program failed to soothe investors. Two-year Treasury yields edged higher to 4.535%, above Wednesday's two-year high. Ten-year yields tacked toward the 5% mark, rising to 4.927%, their highest level since November 2023. Yields on 30-year bonds rose to 5.352%--their highest level since June 2007.
In equity markets, the Nasdaq fell 0.9%. The Dow Jones Industrial Average dropped 0.6%, while the S&P 500 fell 0.7%. European stocks were also lower after a mixed session in Asia.
