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

What happened: Equity markets were mixed, driven by a midday reversal in energy markets as crude oil prices retreated, pushing U.S. stock indices higher. The S&P 500, Dow Jones, and Nasdaq 100 gained 0.15%, 0.34%, and 0.14% respectively. Bond yields continued to rise, with the 10-year note at 4.60%, and the VIX volatility index climbed. Asian markets traded mostly lower, and European markets opened flat. Geopolitical tensions, including U.S.-Iran flare-up and attacks in the Middle East, lifted oil prices and bond yields.

Market impact: Energy stocks benefited from the oil price rebound, while technology stocks, particularly Alphabet and Amazon, dragged the Nasdaq and S&P 500 lower. Higher bond yields weighed on growth stocks, while defensive sectors like utilities and consumer staples outperformed. The 30-year Treasury yield climbed to 5.19%, its highest level since before the 2008 financial crisis.

What to watch next: Investors await PCE inflation data on Friday, which could influence the Fed's rate hike trajectory. Earnings season continues with Nvidia reporting on Wednesday, and the Fed's rate decision and Chairman Jerome Powell's press conference on Wednesday afternoon will provide further clarity on monetary policy. Technical levels for major indices and sector ETFs will also be closely watched for signs of a trend reversal.