Markets, Yields, and Oil
Yields and oil prices fell, giving markets a break and helping stocks bounce back from the prior day's losses. The 10-year Treasury yield had jumped above 5% after the FOMC decision. It dropped more than five basis points to about 4.95%.
Oil fell as supply worries eased. Saudi Arabia shifted some crude exports to Hormuz while its pipeline stays temporarily closed. WTI fell to $100 a barrel early in the session and sits just above $101. Brent holds just above $104.
Record Diesel and Its Reach
Diesel hit an all-time high of $6.31 a gallon, kept elevated by the Iran war holding up oil prices. This is a growing concern for the US economy. Trucking and rail companies feel the pressure first. Higher transportation costs could pass through supply chains and lift prices across the broader economy. One estimate says customers could pay up to 31% more this winter to heat their homes if prices stay at current levels.
SEC Moves on Crypto Regulation
The Clarity Act failed to advance in the Senate this week, but the SEC is building a regulatory framework for crypto anyway. The agency cleared a path for tokenized US stocks to trade on blockchain networks through a new time-limited exemption. This could bring 24/7 trading of stocks closer to reality.
The SEC says the move allows innovation while keeping traditional shareholder rights, including dividends and voting. It excludes synthetic tokens that only track stock prices. The wider point: even without new legislation from Congress, regulators are moving ahead to fold blockchain technology into traditional US capital markets.
What to Watch Tomorrow
Yields and oil prices stay in focus. There is also Fed speak. It starts with Michelle Bowman right after the market opens, followed by Kansas City's Jeff Schmid. This week's decision was unanimous, but since it could be part of a broader hiking cycle, Fed watchers want clues on how each voter sees the path forward on inflation and on how higher oil prices factor in. These remarks may get more focus than usual.
