Good morning, you're tuned in to Markets Desk.
The bond market is back under pressure, and oil is the culprit. Crude pushing above one hundred five dollars a barrel, driven by slumping Saudi production, has sent US ten-year Treasury yields to a three-year high. That sell-off in bonds is tightening financial conditions at precisely the wrong moment for rate-sensitive assets.
That oil-driven price surge is feeding directly into the inflation picture. Wholesale costs jumped again in August, with gasoline prices doing most of the damage. The producer price index report lands ahead of next week's Fed meeting, and markets are now recalibrating their bets on whether the central bank moves again. One more hike is back on the table.
Meanwhile, Rocket Lab is making a serious case for a much higher valuation. The company is positioning itself as a fully vertically integrated space platform, spanning launches, satellites, defense, and communications. Analysts are floating a price target of two hundred dollars per share, arguing the next decade of growth is only beginning to be priced in.
That's the tape. Markets Desk, signing off the floor.
