Shortsighted stock market can no longer brush off war: 'It's too hard to ignore $100 oil'
has conducted strikes against Iran 12 nights in a row — sending both oil prices and Treasury yields higher — domestic equities had mostly brushed off the...
Key points
- has conducted strikes against Iran 12 nights in a row — sending both oil prices and Treasury yields higher — domestic equities had mostly brushed off the idea of the war between the two countries heating up again, staying flat while oil jumped.
- "These problems became too big to ignore," said Steve Sosnick, chief strategist at Interactive Brokers, about the move in stocks on Thursday.
- "It's too hard to ignore $100 oil.
- It's too hard to ignore 10-year rates that are above 4.70%.
What happened
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has conducted strikes against Iran 12 nights in a row — sending both oil prices and Treasury yields higher — domestic equities had mostly brushed off the idea of the war between the two countries heating up again, staying flat while oil jumped. "These problems became too big to ignore," said Steve Sosnick, chief strategist at Interactive Brokers, about the move in stocks on Thursday. "It's too hard to ignore $100 oil. It's too hard to ignore 10-year rates that are above 4.70%. It's too hard for the stock market to ignore 30-year rates that are solidly above 5%." Western Texas Intermediate Crude futures jumped 6% to $92 per barrel, up more than 28% from lows below $70 per barrel they hit earlier this month. In March, after the U.S-Iran war began, the S&P 500 fell more than 7.5% at its low point as oil surged nearly 70% and investors worried about stagflation, where higher energy prices would reignite inflation while elevated costs at the gas pump would weigh on consumer spending.