Equities defied traditional rate-hike headwinds on Friday, closing higher even as Treasury yields surged past 5% and oil prices spiked on geopolitical instability.
Renewed Middle East strikes caused oil prices to spike, which weighed on equities.
10-year Treasury yields topped 5% again amid a sovereign bond sell-off, pressuring stocks.
Major indexes showed mixed reactions, ending lower on rate hike and oil pressure but rallying on Friday despite higher odds of a Fed increase.
The Dow reflected broader index moves, weighed by oil and bond sell-offs but with some countertrend strength.
Major U.S. indexes showed resilience on Friday, rallying despite a Federal Reserve interest rate hike and 10-year Treasury yields topping 5%. While Middle East tensions pushed oil prices higher and weighed on broader market sentiment, investors remain focused on upcoming CPI data to gauge the path of monetary policy.
While rate hikes typically pressure equities, markets showed countertrend strength on Friday as investors balanced the news against technical indicators and anticipation of upcoming CPI data.
The 10-year Treasury yield has topped 5% due to a broader sovereign bond sell-off and concerns regarding the Federal Reserve's tightening cycle.