Reports of possible large-scale U.S. military strikes against Iran, and storm-related production shutdowns in the Gulf of Mexico fueled fresh concerns about global supplies.

  • Brent crude futures for December delivery rose 4% to about $104 per barrel, while November WTI futures rose 4.35% to near $92 per barrel.
  • UBS advised investors to remain invested despite renewed market volatility, per CNBC.
  • Weakness was visible overseas as well, with European markets trading broadly in the red.

U.S. stocks slipped on Thursday as investors continued to track elevated Treasury yields while crude prices jumped. 

The Dow Jones Industrial Average fell 181 points, or 0.4%, shortly after the opening bell. The S&P 500 dipped 0.4%, and the Nasdaq Composite fell 0.5% shortly after the opening bell.

Skyworks Solutions (SWKS) led the S&P 500 losses, down over 5%, followed by Coherent (COHR), Corning (GLW), Lumentum (LITE) and Super Micro Computer (SMCI), while Palantir topped the gainers with a 5% rise.

The weakness was also visible overseas. European markets were broadly in the red, while Asian stocks had already closed lower, led by a 2.62% drop in South Korea’s Kospi and a 1.42% decline in Japan’s Nikkei 225.

On Stocktwits, retail sentiment for the SPDR S&P 500 ETF (SPY) and Invesco QQQ Trust (QQQ) stayed ‘extremely bullish.’ 

Treasury Yields Remain Elevated

Treasury yields continued to climb Thursday, with the benchmark 10-year Treasury yield rising more than 5 basis points to 5.331%, around levels not seen since 2002. The 30-year Treasury yield rose more than 4 basis points to 5.702%, remaining near a 24-year high.

Earlier in the day, Federal Reserve Governor Christopher Waller said that if economic data continue to come in as expected, he anticipates additional hikes to support a timelier return of inflation to the Fed’s 2% goal. He added that the hikes do not need to come at consecutive meetings.

Billionaire investor Ray Dalio told CNBC that he thinks the bond bear market has “more to go.” He said stocks have so far absorbed higher interest rates because earnings growth and expected returns have remained strong enough, though that cushion has narrowed.

Crude Futures Trade Higher

Brent crude futures maturing in December jumped 4% to trade around $104 per barrel, while West Texas Intermediate crude futures maturing in November also jumped 4.35% to trade around $92 per barrel.

Oil-linked exchange-traded funds United States Oil Fund (USO) and ProShares Ultra Bloomberg Crude Oil (UCO) saw sharp gains as reports of possible large-scale U.S. military strikes against Iran and storm-related production shutdowns in the Gulf of Mexico fueled fresh concerns about global supplies.

Stocktwits users were split on the two oil funds, with sentiment ‘bearish’ on USO but ‘bullish’ on UCO.

UBS Says Stay Invested Despite Market Turbulence

According to a CNBC report, UBS advised investors to remain invested despite renewed market volatility. Ulrike Hoffmann-Burchardi, chief investment officer of the Americas at UBS, said waiting for current concerns to fade could mean missing further gains.

The analyst urged investors to focus less on finding a perfect entry point and more on maintaining exposure while managing concentration and timing risks through a disciplined portfolio approach.

See Also: Ray Dalio Says Bond Bear Market Has ‘More To Go’ As Government, Companies Compete For Capital

For updates and corrections, email newsroom[at]stocktwits[dot]com.<