Finance

Benchmark Brent crude prices jumped 4.1% to settle at $104.28 per barrel following a fresh tanker attack in the Persian Gulf. Energy prices experienced massive intraday swings, adding pressure to equity benchmarks and heightening stagflation worries. However, the surge eased slightly from its session highs after remarks from President Trump stating that the United States would not strike Iran ahead of the upcoming midterm elections.

The bond market faced significant morning volatility as the 10-year and 30-year Treasury yields touched their highest levels since 2002. Yields ultimately pulled back later in the afternoon, offering relief to the broader stock market and allowing the Dow Jones Industrial Average to scratch out a modest 0.1% gain. The late-day retreat in yields was supported by robust investor demand during auctions for 10-year and 30-year sovereign bonds.

Initial jobless claims for the week ending October 3 landed below consensus expectations at 197,000, underscoring continued resilience in the domestic labor market. This economic durability aligns with newly released minutes from the September Federal Reserve meeting, which revealed growing concern among policymakers regarding sticky inflation linked to energy markets. Market participants are increasingly bracing for a restrictive monetary policy backdrop, with officials hinting at the potential need for additional rate hikes before the end of the year.