Stock markets worldwide drop from records as worries about oil prices rattle the bond market

Global stock markets dropped from record highs as rising oil prices triggered bond market volatility, with U.S. indices like the S&P 500, Dow Jones, and Nasdaq declining amid concerns over inflation and geopolitical tensions in the Strait of Hormuz. Technology stocks, including Nvidia and Applied Materials, led the downturn, while Treasury yields surged to multi-month highs, signaling economic uncertainty." "article": "Global stock markets retreated Friday after reaching record highs, with U.S. indices leading the decline. The S&P 500 fell 1.2% from its all-time peak, the Dow Jones dropped 426 points (0.9%), and the Nasdaq declined 1.8% from its record. Technology stocks, which had driven markets higher, faced sharp losses, with Nvidia down 4.5% and Applied Materials off 2.3% despite strong quarterly profits. The downturn followed rising oil prices, which increased inflation pressures. Brent crude oil climbed 2.7% to $108.57, up from around $70 before the Iran war. The Strait of Hormuz remains closed to oil tankers, disrupting global crude deliveries. Bond market volatility worsened as Treasury yields rose sharply. The 10-year Treasury yield jumped to 4.57% from 4.47%, while the 30-year yield hit its highest level since 2023. Higher yields increase borrowing costs for mortgages and other loans, adding to economic strain. Analysts noted that while corporate profits and the U.S. economy remain strong, markets may face further turbulence. Consumer sentiment has weakened due to rising gas prices and geopolitical pressures, raising concerns about sustained economic growth.