Rising oil prices are knocking the U.S. stock market further from its record high on Monday, while building pressure even higher within the U.S. bond market.
asserted
prices → rise → market
The S&P 500 fell 0.8 per cent and gave back most of its gains from last week, which had brought it to the brink of its all-time high.
asserted
which → fall → high
Most of the U.S. stock market sank under the weight of a 2.8 per cent rise for the most actively traded contract in the market for Brent crude oil to US$100.19 per barrel.
asserted
Most → sink → barrel
That overshadowed a gain for Wall Street’s most influential stock, Nvidia, after it announced a historic funneling of cash to its investors through a buyback of its shares.
asserted
it → overshadow → shares
Meanwhile, the Toronto Stock Exchange was in the red by about 0.75 per cent as many companies tied to mining gold, silver and other commodities struggled.
asserted
companies → tie → gold
Oil prices have been yo-yoing on uncertainty about when the war with Iran will allow tankers to flow freely again through the Strait of Hormuz and deliver oil from the Middle East to customers worldwide. The latest turns came after President Donald Trump said over the weekend he’s rejecting an offer from Iran to reopen the Strait of Hormuz and resume talks on its nuclear program.
asserted
he → - → program
“I’d like to make a deal, too,” Trump said Saturday.
asserted
Trump → like → deal
Brent climbed above $101 per barrel Monday morning, before the U.S. stock market opened for trading, but it pared its gains as U.S. officials said mediators were still working with Iran and the United States on a deal to end the fighting and open the strait.
asserted
mediators → climb → strait
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For all its ups and downs, a barrel of Brent remains much higher than the roughly $72 it cost before the United States and Israel attacked Iran in late February.
asserted
States → get → February
That has helped worsen inflation, and the average price for a gallon of regular gasoline is up to nearly $4.48 from $3.13 a year ago, according to AAA.
uncertain
price → help → AAA
Worries about inflation have in turn helped send Treasury yields much higher in the bond market.
asserted
Worries → send → market
That pressures the economy because it makes borrowing money more expensive for everyone, while also undercutting prices for stocks and other investments.
asserted
borrowing → pressure → stocks
The yield on the 10-year Treasury, which is the centerpiece of the bond market, jumped to 5.26 per cent from 5.17 per cent late Friday.
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which → jump → cent
That’s a considerable move for the bond market, and the 10-year yield is back to where it was in 2007, before the financial crisis and Great Recession sent yields toward zero.
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crisis → ’ → zero
The 30-year Treasury yield, which leaped to 5.58 per cent from 5.49 per cent, is back to where it was in 2004.
asserted
it → leap → 2004
On Wall Street, stocks of airlines and other companies with big fuel bills sank because of the rise in oil prices.
asserted
stocks → sink → prices
American Airlines fell 3.8 per cent, and United Airlines lost 3.6 per cent.
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Airlines → fall → cent
Gold miners were also weak after the price of gold sank 3.9 per cent.
asserted
price → sink → gold
Gold has a reputation for helping to protect its investors from high inflation, but its price tends to weaken when yields are rising and causing bonds to pay their investors more in interest.
asserted
bonds → have → interest
Gold struggles to keep up because it pays its investors nothing.
asserted
it → struggle → nothing
Newmont, the Denver-based mining giant, sank 4.4 per cent.
asserted
Newmont → base → ?
One of Wall Street’s bigger losses hit MongoDB, which dropped 18.5 per cent after the database company said its CEO, Chirantan “CJ” Desai, is stepping down immediately to pursue a senior role at Meta Platforms.
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CEO → hit → Platforms
Such losses helped more than offset a two per cent rise for Nvidia.
asserted
losses → help → Nvidia
The chip company said it approved a plan to send up to another $150 billion to its shareholders in a stock buyback plan, bringing the program’s total remaining size to $235 billion.
asserted
it → say → billion
Nvidia has the power to do so after the frenzy around its chips used for artificial-intelligence technology helped it more than double the amount of cash on its books in the first half of its fiscal year.
asserted
it → have → year
The company also on Monday unveiled a new security platform that the chipmaker said can stop artificial intelligence agents from going rogue.
asserted
chipmaker → unveil → agents
AI stocks broadly have come under pressure after leaders of the industry said it needs to slow its development to give safety measures time to catch up.
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it → come → time
In stock markets abroad, European indexes were mixed following weaker performances across much of Asia.
asserted
indexes → follow → Asia
Indexes dropped 2.7 per cent in Seoul and 1.7 per cent in Shanghai for two of the world’s bigger moves.
asserted
Indexes → drop → moves
The Aporia
