Stocks retreat from records as oil and yields stay elevated

· Politics · United States

A record-breaking run in US stocks hit a wall as still-elevated oil prices stoked concerns that inflationary pressures could trigger further Federal Reserve rate hikes. The S&P 500 pulled back after recently hitting a record, with two large bearish options trades signaling skepticism. Third-quarter earnings season kicks off this week, with analysts expecting strong profits that could propel the index to new heights. The 10-year Treasury yield backed off a 24-year high after a solid auction, while the dollar strengthened and gold fell to a two-month low.

Why it matters：Investors are weighing whether AI-driven earnings can offset renewed inflation and rate risks, a balance that will set the tone for global markets.

Key points

  • Elevated oil prices stoked fears of potential Fed rate hikes.
  • Two large bearish options trades signaled market skepticism.
  • Third-quarter earnings season begins this week.

Sources (original reporting)

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