Bonds & Stocks
A renewed episode of bond volatility left traders unwilling to make riskier bets, with stocks falling on worries that elevated oil prices will fuel inflation and force the Federal Reserve to lift rates. The S&P 500 fell 0.4%. The yield on 10-year Treasuries declined two basis points to 5.10%.
Economy
Oil surged as Iran threatened to expand the war in the Middle East, worsening the outlook for a deal to reopen the vital Strait of Hormuz. Brent futures jumped more than 3% to trade above $106 a barrel, after a top Iranian military official said Tehran may broaden the war to the Indian Ocean if attacked.
World
Donald Trump and Xi Jinping agreed to maintain a trade truce until early 2027, with neither ready to upend relations between the world’s biggest economies even as tensions persist over rare earths, technology curbs and Taiwan.