Oil drop steadies Wall Street as yields ease

Oil prices declined again, easing inflation worries and supporting a rally in U.S. equities, with the S&P 500, Dow, and Nasdaq posting gains as bond yields moved lower thanks to the oil drop. The 10-year Treasury yield slipped to around 4.64%–4.66%, reflecting softer inflation expectations amid the oil softness and renewed hopes about de-escalation in the Iran situation. Reports of diplomacy returning to the Middle East and potential progress on navigation through the Strait of Hormuz contributed to optimism, even as tensions with Iran linger. Tech leadership helped prop up markets, with Nvidia and other AI-infrastructure names weighing in, and short covering in chipmakers ahead of Nvidia’s results. Yet, data on US housing and consumer confidence showed weakness and tempered gains, underscoring ongoing caution. Global market commentary also noted that lower oil prices are supporting a softer yield curve and a more favorable risk mood, even as policy and geopolitical risks persist across regions.