Powell Comments Calm Bond Market as Oil Surge Pressures Stocks and Bitcoin

Federal Reserve Chair Jerome Powell eased market concerns about immediate interest rate hikes, helping stabilize the bond market even as broader risk assets weakened. Speaking at Harvard University, Powell said the Federal Reserve is inclined to look past short term energy shocks linked to the Iran conflict and focus on inflation expectations that remain “well anchored.”

Following his remarks, the U.S. 10-year Treasury yield dropped nine basis points to 4.35%, while the 2-year yield declined eight basis points to 3.83%. Market expectations for one or more Federal Reserve rate hikes in 2026 fell sharply to 5% from 25% recorded on Friday, according to CME FedWatch data.

Rising Oil Prices Weigh on Stocks and Crypto Markets

Despite early gains, risk assets reversed course as oil prices surged. WTI crude oil rose 5.3% to nearly $105 per barrel, marking its first close above $100 since 2022. The Nasdaq ended lower by 0.75%, the S&P 500 fell 0.4%, and Bitcoin retreated to about $66,500 after earlier advances.

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