Stocks in Focus After Bonds Send Inflation Alarm

With no clear-cut end in sight to the Iran war, investors enter a new week under the spell of its key economic consequence: rising global interest rates, and the inflation threat they signal.

The S&P 500 Index fell the most since March on Friday as a global bond selloff drove 10-year US Treasury yields above 4.5%, pushed Japan’s 30-year borrowing costs to 4% and sent yields on UK long bonds to a 28-year high. In oil markets, West Texas Intermediate rose 4% Friday to settle above $105 a barrel, while global benchmark Brent crude settled above $109.