Oil prices, Treasury yields and shifting interest rate expectations are keeping markets on edge as the fourth quarter approaches. Oil benchmarks remain elevated following developments around the Strait of Hormuz, while the U.S. 10 year Treasury yield has climbed above 5.2%, near levels not seen in nearly two decades.
Markets are also reassessing the outlook for monetary policy, with Fed Funds futures pointing toward a potential rate hike in October. Investors are watching upcoming U.S. consumer confidence and jobs data for signals that could further reshape expectations around interest rates.
The global picture is also in focus, with Canada set to release GDP data and Europe preparing for inflation figures. As central banks maintain a hawkish stance, the U.S. dollar is gaining strength amid growing expectations that the global rate hiking cycle could be entering a new phase.