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

What happened: On Monday, major indices were mixed but trending lower at midday, with June S&P 500 and Nasdaq 100 E-Mini futures down -0.41% and -0.30% respectively. This was driven by rising oil prices, with WTI crude up over 1% amid the Iran-U.S. impasse, and higher bond yields following last week's inflation data. The 10-year Treasury yield reached 4.60%, and the VIX volatility index also climbed. On Tuesday, indices were lower, with the 30-year Treasury yield hitting 5.19%, its highest level since before the 2008 financial crisis, and crude oil at $103 per barrel.

Market impact: Tech stocks, particularly Alphabet and Amazon, dragged down the Nasdaq and S&P 500, despite modest declines of 2-3%. Higher inflation and bond yields make equities less attractive, impacting growth stocks more due to their higher valuations and discounted future cash flows. Oil's rise above $100 affects energy-intensive industries and consumer spending, with potential knock-on effects on supply chains and corporate earnings.

What to watch next: Investors await Nvidia's earnings (June 15) and the Fed's minutes from the latest meeting (June 15) for clues on inflation and interest rate paths. Additionally, watch crude oil's next move, as a sustained level above $100 could trigger further market reactions and impact economic growth projections.