Treasuries Climb as Powell Eases Fed-Hike Jitters Amid Iran War Concerns

• Treasuries rebounded as Federal Reserve Chair Jerome Powell eased fears about higher energy prices impacting inflation, leading traders to resume rate cut bets for 2026.
• Powell stated that longer-term inflation expectations are "well anchored," helping the bond market trim its worst monthly selloff since 2024.
• The S&P 500 fell 0.4% due to a rout in chipmakers, while US oil prices topped $100 amidst Middle East conflict concerns.
• Analysts suggest Powell's calm tone and focus on growth risks from high oil prices are shifting rates pricing, making cuts more probable than hikes.
• The war in the Middle East continues to fuel market volatility, with the White House threatening further escalation against Iran.