Bond Markets Steady After a Wild Week, While Oil and Geopolitics Stay in Focus

Global bond markets showed signs of calming Friday morning after a record-breaking week for yields, giving U.S. stock futures a modest lift. The relief came alongside a retreat in oil prices, driven by reports that U.S. and Iranian negotiators meeting in New York are discussing a potential deal to reopen the Strait of Hormuz. But as WSJ markets reporter Caitlin Ostroff explained, the broader backdrop remains tense, and the calm could prove short-lived.

Markets Focus on Rates and Oil, Not Diplomacy

Despite a busy week of high-level diplomacy — including the Trump-Xi summit in Washington — markets have largely shrugged off the political pageantry. The summit between Trump and Chinese President Xi Jinping was "heavy on ceremony and light on outcomes," Ostroff noted. The two sides agreed to a modest two-month extension of the existing trade détente, but major issues remain unresolved on everything from rare earths to agricultural purchases to AI.