Treasury Yields Climb as Fed Split Amid War Risks: Markets Wrap

Wall Street traders drove bonds lower and stocks wavered as a divided Federal Reserve held rates steady and signaled the war in Iran is clouding the economic outlook. Brent crude hit the highest since 2022.

With no end in sight to the Middle East conflict, money markets all but abandoned wagers on a rate cut this year and began pricing in the chances of a hike in 2027. Treasury 10-year yields hit a one-month high. Most shares in the S&P 500 fell. In late hours, Meta Platforms Inc. slid after boosting its spending outlook. Microsoft Corp.’s cloud growth failed to ease investors’ artificial-intelligence concerns. Alphabet Inc. climbed on solid sales.