Market update: mixed indices, higher bond yields, oil above $100

What happened: On Tuesday, Treasury yields increased 3 basis points, driven by rising oil prices and anticipation of inflation data. Oil prices surged due to Middle East tensions, with the U.S. WTI crude futures reaching an intraday high of $102.99. Stock futures initially hit record highs following comments suggesting the Iran nuclear deal could reopen the Strait of Hormuz, but indices later retreated as crude oil and bond yields climbed. The S&P 500 and Dow Jones Industrial Average closed mixed, while the Nasdaq 100 ended the day down.

Market impact: Energy stocks were boosted by higher oil prices, while technology and growth stocks retreated due to rising bond yields and geopolitical concerns. Companies like ExxonMobil (XOM) and Chevron (CVX) saw gains, while tech giants like Apple (AAPL) and Microsoft (MSFT) experienced losses. Bitcoin (BTC) outperformed stocks, trading flat despite market volatility.

What to watch next: Investors await the Consumer Price Index (CPI) report on Wednesday, which could influence bond yields and equity markets. Earnings season continues with notable reports from companies like Microsoft (MSFT) on July 26 and Alphabet (GOOGL) on July 27. Additionally, geopolitical developments around Iran and the Middle East will continue to drive oil prices and market sentiment.