Global Market: Wall Street Rallies Despite 24-Year High Bond Yields
Global equity cues point toward an upbeat trading tone ahead of the Indian stock market’s opening bell on Tuesday, powered by strong overnight resilience across Wall Street. Overcoming persistent geopolitical tensions in West Asia and spiking sovereign borrowing costs, US stock benchmarks posted decisive gains to kick off the trading week. The Dow Jones Industrial Average staged an intraday turnaround, rebounding nearly 400 points from its session lows to settle 90 points higher. The broader S&P 500 gained 0.7%, moving within just 40 points of its all-time high, while both the tech-heavy Nasdaq Composite and the Nasdaq 100 established fresh lifetime peaks. Early signals from the GIFT Nifty indicate a positive start for domestic bourses, signaling potential continuation of the Dalal Street rally.
Treasury Yields Spike to 24-Year Highs: 30-Year Bond Eyes 6% Level
The equity market's upward momentum came despite severe tightening signals radiating from the US fixed-income landscape. Benchmark bond yields reached multi-decade records, with the US 10-year Treasury yield jumping to 5.349%—its highest level recorded since April 2002. Concurrently, the long-term 30-year Treasury yield advanced to 5.703%, scaling peaks unseen since May 2002. Market analysts at BMO Asset Management cautioned that the 30-year sovereign yield appears on track to breach the critical 6% threshold within the month, an event that has not occurred in global credit markets since the year 2000. Despite surging risk-free returns, equity investors maintained steady buying, particularly targeting mega-cap technology and artificial intelligence enterprises. SpaceX shares climbed approximately 7%, while AI bellwethers Nvidia, Tesla, and Meta all advanced over 2%, demonstrating robust risk appetite for technological growth.
Energy Markets Ease: Crude Weakens as Alternative Pipelines and Hormuz Transit Buffer Supply
Crude oil futures experienced mild downward pressure, providing critical cost relief for import-dependent emerging economies like India, with benchmark Brent crude projected to trade back below the key $100 per barrel mark. Energy logistics across West Asia are maintaining steady throughput despite regional friction, as oil-producing nations continue maritime transits through the Strait of Hormuz. Kuwait reported that its crude output has rebounded to approximately 75% of pre-conflict levels, while the strategic East-West Pipeline is operating near 80% capacity to bypass maritime bottlenecks. In a significant commercial pricing move, state energy giant Saudi Aramco slashed the official selling price of its flagship Arab Light grade to a six-year low. However, Saudi Aramco CEO Amin Nasser warned that global crude inventories remain depleted, cautioning that sustained market equilibrium will require at least two years of consistent supply additions once full transit confidence is restored.
