Markets turned risk-averse as Middle East tensions pushed Brent crude above $114 a barrel, while Meta shares fell 7% and the Nasdaq dropped 2.6%. France’s 10-year bond yield reached 5%, and investors looked ahead to the Federal Reserve meeting and September inflation data.
Oil prices stayed above $110 a barrel during the week, with Brent reaching a five-month peak above $114 on Friday. Attacks in Saudi Arabia and the Strait of Hormuz, along with US orders for some diplomats and family members to leave missions in Saudi Arabia, added to market concerns.
Meta reported higher-than-expected revenue but also its first quarterly negative free cash flow in more than a decade. Its shares fell 7% on Thursday as the Nasdaq dropped 2.6%, its biggest daily decline since early June; investors moved into US Treasuries, briefly pushing the 10-year yield down more than 19 basis points before it steadied around 4.97% on Friday morning.
France’s 10-year government bond yield reached 5% on Wednesday, its highest level since 2002, while the spread over German Bunds widened to a 15-year high on Thursday. Investors were looking ahead to the Federal Reserve meeting and September PCE inflation data, with most expecting rates to remain steady on Wednesday.
