Stories
Wall Street Futures Drop As Crude Oil Surges Past 105 Dollars And Yields Climb
- •Wall Street futures declined up to 0.8 percent as Brent crude surged nearly 5 percent to cross 105 dollars a barrel.
- •The 10-year US Treasury yield climbed six basis points to 5.34 percent, negatively impacting market sentiment.
- •Federal Reserve Governor Christopher Waller indicated that further interest rate hikes will likely be needed to slow inflation.
- •Indian benchmark indices Sensex and Nifty tumbled sharply, with Sensex falling 1,045 points and Nifty dropping to a 21-month low.
Key Questions Answered
Wall Street futures and global stock indices declined as Brent crude surged past $105 a barrel following a report challenging assumptions that US President Donald Trump would avoid escalating conflict with Iran. Additionally, rising US Treasury yields and comments from Federal Reserve Governor Christopher Waller signaling likely further rate hikes to slow inflation weighed on market sentiment.
Benchmark indices Sensex and Nifty tumbled sharply due to heavy selling in rate-sensitive, commodity, and FMCG shares. The Sensex plummeted 1,045.46 points to settle at a more than two-and-a-half-year low of 71,593.24, while the Nifty slipped to a 21-month low of 22,231.80 amid surging crude prices and tighter monetary condition prospects.
Brent crude climbed past $105 a barrel driven by persistent supply worries in the Middle East, increased attacks on shipping in the Gulf and Strait of Hormuz, and US output cuts as a hurricane threatened offshore production. Furthermore, reports regarding Washington preparing to resume major combat operations against Iran drove prices higher.
