Global markets traded unevenly on Thursday as oil prices jumped and bond yields climbed. Investors tracked the Middle East conflict and positioned ahead of the US payrolls report. Rising energy costs and firm labor data remained the key drivers.
US equities held a narrow range in cash trading. The S&P 500 sat little changed at 9:59 a.m. New York time. The NASDAQ 100 rose 0.2%, while the Dow Jones Industrial Average fell 0.5%. European stocks also eased, with the Stoxx Europe 600 down 0.3% and the MSCI World Index near flat.
Bond markets moved more decisively. The US 10-year Treasury yield advanced four basis points to 4.13%. Germany’s 10-year yield rose to 2.83%, and Britain’s 10-year yield climbed to 4.53%. Traders reduced the implied pace of Federal Reserve easing as energy-linked inflation risks grew.
Crude prices rose sharply as the conflict in the Middle East entered a sixth day. Brent briefly hit $84 as disruptions hit flows to key buyers. West Texas Intermediate rose 4.4% to $77.94 a barrel. The move revived concerns about inflation and lifted borrowing costs across major markets.
The yield climb reflected that inflation fear. Market pricing for Fed rate cuts fell quickly. Swaps implied about 35 basis points of cuts by year-end, down from around 60 basis points late last week. Rising fuel costs can filter into freight, production, and household spending. This risk pushed investors to demand higher yields.
Strategists also flagged the path for oil as the key variable. Some analysts expect a pullback if shipping normalizes soon. Others see a higher oil “floor” if disruptions persist. Either outcome matters for Treasury yields because energy prices can shift inflation expectations.
Currency markets reflected a cautious tone. The Bloomberg Dollar Spot Index rose 0.2%. The euro slipped 0.2% to $1.1605, and the British pound fell 0.2% to $1.3348. The Japanese yen weakened 0.3% to 157.54 per dollar as investors favored the dollar during risk-sensitive sessions.
Crypto prices softened alongside broader risk positioning. Bitcoin fell 1% to $72,631.88, while Ether dropped 1.5% to $2,118.89. Traders watched yields closely because higher real rates often reduce demand for non-yielding assets. Oil-linked inflation fears also added uncertainty ahead of the jobs report.
Labor data supported the “resilient but slower” narrative. Weekly jobless claims held steady at 213,000 for the week ending February 28, according to the US Labor Department. This reading signaled low layoffs even as hiring remains more selective. The steady claims print arrived one day before payrolls data that markets treat as the next major catalyst.
Company news created sharp moves in select names, even as macro headlines set the tone. AI spending plans stayed central for chip and cloud firms. Banks and retailers also delivered updates that investors used to gauge demand and cost discipline.
Broadcom CEO Hock Tan said AI chip sales could top $100 billion, with demand tied to custom chips and AI infrastructure.
Amazon Web Services launched new AI tools for medical practices, expanding its healthcare push through cloud software.
Morgan Stanley said it will cut about 3% of its global workforce (around 2,500 roles) across major divisions.
Berkshire Hathaway CEO Greg Abel said he plans to use his take-home pay to keep buying Berkshire stock while he leads the firm.
Kraft Heinz stayed in focus after Abel said Berkshire has no immediate plan to change its stake following the company’s pause on a split plan.
Kroger issued a softer full-year outlook as it works to stabilize operations under a new top executive.
Investors now turn to Friday’s US payrolls report for a clearer read on growth and wage pressure. Until then, oil headlines and bond yields will likely keep steering daily market direction.
Also Read: US Stock Market Today: Global Markets Fall as Iran Conflict Lifts Oil and Safe-Haven Demand
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