Bond Market Flips to 'Higher for Longer' as Oil Jumps, Nasdaq Futures Drop 1%
IXIC sits 31% above its 52-week low of $20,690.249.
Summary
Global stocks fell Monday as oil jumped on the US-Iran stalemate and Treasury yields surged, signaling investors are bracing for rates to stay higher for longer. Brent crude rose 4% to $108.5 a barrel, up 20% this month, while two-year yields have shot up 56 basis points in September—the largest monthly rise since February 2023. Nasdaq futures dropped 1%, and the 30-year yield hit its highest since 2004 last week. The bond market is pricing US resilience and a higher equilibrium rate, not crisis, but the rising cost of capital is emerging as a key risk to AI-linked companies and hyperscalers. This follows a month of oil-driven volatility and the Fed's quarter-point hike on September 16, which signaled one more hike. Watch the packed US data calendar this week—inflation, GDP, manufacturing, and jobs—for confirmation of the higher-for-longer path.
At the time of this announcement, IXIC was trading at $27,068.72 on NASDAQ in the Finance sector. The 52-week trading range was $20,690.25 to $27,288.79. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.