US stocks close lower as Treasury yields hit multi-year highs amid inflation fears and oil price surge
US equity markets declined following higher producer prices and persistent energy costs, while Argentina's consumer prices rose 1.7% monthly.
United States stock markets closed down this Friday after rising producer prices and increased oil costs fueled concerns the Federal Reserve would hike interest rates next week. The surge in Treasury bond yields reduced the attractiveness of equities. Chip manufacturers faced losses, with Nvidia dropping 2.3% and Micron Technology falling 4.7%. Apple shares gained 3.6%, following a new iPhone launch priced at US$1,999. Supply route disruptions through the Strait of Hormuz and the Red Sea driven by conflicts involving the United States, Israel, and Iran pushed the Brent price up 6% to US$107 per barrel. This movement heightened inflation worries and expectations for a rate increase during the Fed meeting on Wednesday. Ten-year Treasury yields climbed to their highest level in nearly three years, while 30-year yields reached a peak exceeding 19 years.
