Dollar Surges as Yields Hit Multiyear Highs; Stocks Slide
Rising Treasury yields and crude oil above $91 fuel a dollar rally while Wall Street opens sharply lower amid geopolitical tensions.
The U.S. dollar pushed broadly higher Thursday as Treasury yields climbed to their loftiest levels in months, squeezing major currency pairs and rattling equity markets at the North American open. The 10-year yield hit its highest mark since January 2025 at 4.693%, while the 2-year note reached its strongest level since February 2025 at 4.332%, reflecting persistent market pressure on rate-sensitive assets. Crude oil added further fuel to the dollar's rally, with prices crossing $91 per barrel for the first time since June 11.
U.S. equities buckled under the weight of rising yields and geopolitical unease. The Nasdaq fell roughly 300 points, the S&P 500 dropped 55 points, and the Dow shed 32 points in early trading. Despite a busy morning of corporate earnings — with major beats from Blackstone, Lockheed Martin, RTX Corp., Comcast, and Thermo Fisher Scientific — broader macro headwinds dominated sentiment. Infosys trimmed its full-year revenue guidance, adding a cautionary note to the earnings parade.
Read more ECB Rate Decision and US Jobless Claims Headline Thursday →
Geopolitical risk escalated overnight after Iran reportedly launched a missile strike targeting the Al-Abdali border crossing between Iraq and Kuwait, while explosions were confirmed near the Iraqi-Kuwaiti border. Even so, Iran's Foreign Minister indicated that diplomatic communication with the United States remains open, and Iraqi and Iranian leaders held talks aimed at deepening cooperation. Ukrainian President Zelensky separately warned that Russia is intensifying attacks on Black Sea shipping lanes, compounding risks to global trade.
On the data front, the European Central Bank is expected to hold rates steady at its 8:15 AM decision, while weekly U.S. initial jobless claims — forecast at 212,000 versus 208,000 the prior week — are due at 8:30 AM alongside Canadian retail sales data. After the closing bell, Intel is set to report earnings; the chipmaker's shares have already surged 178% this year, making the release a closely watched event for technology investors.
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