What’s News in Markets: Bond Selloff, Big Nvidia Deals, Apple’s New CEO

This week on Wall Street, September arrived with a thud. Brent crude oil surged back above $90 a barrel, bond yields around the world hit new multi-year highs, and a hotter-than-expected jobs report on Friday flipped the odds of a September rate hike to 60-40 in favor, up from a coin toss the day before. In the middle of all that macro turbulence, two of the world’s most valuable companies made huge moves: Nvidia went on a dealmaking spree, and Apple got a new CEO.

Oil, Jobs, and the Bond Selloff

The week’s dominant market theme was a sharp rise in bond yields, driven by a confluence of factors. Renewed fighting in the Strait of Hormuz sent Brent crude above $90 a barrel, eventually closing the week around $96. That spike in energy prices rekindled inflation fears, which pushed yields higher globally. Then on Friday, a stronger-than-expected jobs report added more fuel. The 10-year Treasury yield rose to 4.783%, reversing the declines that had preceded the report. The strong labor market reinforced expectations that the Federal Reserve could raise interest rates this month. By Friday’s close, interest rate futures priced a September hike at 60%, up from a 50-50 split the day prior.

The stock market’s response was mixed. The Nasdaq added 0.4% for the week, the S&P 500 gained 0.1%, and the Dow finished about a quarter of a percent lower.