Bonds post worst month in years; stocks decline for September and oil gains
SPY•Global bonds ended their worst month in years, with the 10-year U.S. Treasury yield rising 53 basis points for its biggest monthly increase since September 2022. The S&P 500 fell for September, while Brent crude gained about 14%.
1. Bonds and stocks
The 10-year U.S. Treasury yield rose 53 basis points in September, its biggest monthly increase since September 2022. The S&P 500 declined for the month, while European shares recorded their first monthly fall in six.
2. Inflation and rates
A U.S. inflation report showed prices increased less than expected in August, reducing market expectations of a Federal Reserve rate hike next month. The market priced in about a 63% chance that rates would hold steady, up from 55% before the report.
3. Oil gains
Brent crude rose about 14% in September, its biggest monthly gain since July, as U.S.-Iran peace talks stalled and U.S. fuel markets tightened. West Texas Intermediate gained about 5% for the month.
