Finance

Oil prices jumped roughly 5% on concerns over escalating friction in the Middle East, with reports indicating heightened threat levels for tankers traveling through the Strait of Hormuz. The sudden jump in energy costs sparked broader market anxieties regarding persistent inflation and long-term interest rates. However, prices partially pared their gains later in the session after comments indicated the U.S. would not launch an offensive prior to the upcoming midterm elections.

U.S. Treasury yields pushed higher during Thursday's trading session, weighing on riskier equity sectors. Selling pressure across the bond market intensified following comments from Federal Reserve Governor Christopher Wallace, who stated that multiple interest rate hikes could be required to lower inflation within a desirable timeframe. Yields stabilized somewhat following a robust 30-year bond auction later in the afternoon.

Digital assets experienced a sharp pullback as Bitcoin dropped beneath its critical $84,000 support level, triggering massive long-side liquidations across cryptocurrency platforms. Macroeconomic pressures from high Treasury yields and surging crude oil prices accelerated the declines, prompting over $400 million in net outflows from spot Bitcoin exchange-traded funds. Additionally, cryptocurrency mining operations underperformed the broader market due to changing expectations for capital expenditures tied to their AI infrastructure projects.