Stock markets worldwide drop from records as worries about oil prices rattle the bond market
AP News • • business
Key Points:
- The U.S. stock market declined from record highs on Friday, led by a drop in technology stocks associated with artificial intelligence, with the S&P 500 falling 1.2%, the Dow down 0.9%, and the Nasdaq down 1.8%.
- Rising oil prices due to the ongoing war with Iran and the closure of the Strait of Hormuz have increased inflation concerns, pushing Brent crude oil prices up 2.7% to $108.57 per barrel.
- Treasury yields rose sharply, with the 10-year yield climbing to 4.57% and the 30-year near its highest since 2023, signaling higher borrowing costs that could slow economic growth and pressure stock prices.
- Smaller companies experienced some of the steepest declines, as higher yields increase their borrowing costs, exemplified by a 2.3% drop in the Russell 2000 index.
- Global markets also fell sharply, with South Korea’s Kospi dropping 6.1%, reflecting concerns about the sustainability of the recent tech and AI-driven market momentum.