Wall Street was poised to open lower this morning, the Associated Press reports, with markets under pressure from higher interest rates and the risk of broader conflict in the Middle East. Futures for the S&P 500, Nasdaq, and the Dow all fell about 0.4% before the bell Monday.
The yield on the 10-year Treasury briefly touched 5%, a level it hasn’t reached since 2007. It quickly retreated back to 4.99%. Stocks have been struggling under the weight of the bond market since high yields make borrowing more expensive and slow the economy while dragging on prices for stocks and other investments.
Israeli warplanes conducted airstrikes on various targets in Gaza early today, including areas where Palestinian civilians had been instructed to seek shelter. Israel has announced its intention to step up its attacks on the Gaza Strip in preparation for the next stage of its war on Hamas. The escalation of conflict in the Middle East has rattled markets, adding to uncertainty about oil supplies from the region if the fighting spreads.
Today also brought news of another big merger in the oil industry. Chevron said it would buy Hess Corp. for $53 billion. The deal comes on the heels of Exxon’s agreement to buy Pioneer Natural Resources for $60 billion.
A barrel of benchmark U.S. oil fell 46 cents to $87.52 per barrel early today. Brent crude, the international standard, slid 29 cents to $91.87 per barrel.
In currency trading, the U.S. dollar rose slightly to 149.90 Japanese yen from 149.87 yen.
