Bonds & Stocks
A renewed advance in oil sent stocks lower as bond yields rose on concern that an escalation of hostilities between the US and Iran will hinder prospects for a peace deal, with elevated energy costs fueling inflation risks. The S&P 500 fell 0.2%. The yield on 10-year Treasuries advanced five basis points to 4.49%.
Economy
Mortgage applications fell by 2.5% in the week ended May 29 despite a decline in 30-year fixed mortgage rates, according to Mortgage Bankers Association data released Wednesday. This follows an 8.5% decrease in overall activity in the week ended May 22.
World
The US and Iran clashed again overnight, with Kuwait and Bahrain caught in the crossfire of one the most serious flare-ups since a ceasefire went into effect in early April.