North American stock markets opened lower Thursday as oil prices rose and Treasury yields climbed toward pre-Great Recession levels amid the ongoing U.S.-Iran stalemate.
The 30-year Treasury bond yield touched 5.197% earlier this week, its highest since July 2007. High yields slow economies, pressure stocks and crypto, raise mortgage rates, and could curtail corporate borrowing for AI data center investments.
The S&P 500, Dow Jones, and Nasdaq each fell roughly half a percent. The Toronto Stock Exchange dropped about a quarter percent.
Oil prices rebounded after falling 5% Wednesday. Brent crude rose nearly $4 to almost $109 per barrel; U.S. WTI gained $4 to $102. Brent remains well above its pre-war level of about $70.
Walmart shares slid more than 6% despite strong sales, after offering a weaker than expected outlook. Nvidia fluctuated overnight after reporting quarterly revenue up 85% and profits more than tripled, driven by massive demand for its AI chips.
The 10-year Treasury yield inched back to 4.60% after falling from 4.67% earlier this week. Yields had been rising from under 4% before the war with Iran began.