Markets pick up gains in face of oil, bond yield surge

Stocks eked out weekly gains despite oil prices and bond yields climbing to unsettling levels, with the Dow up 146 points and the S&P and Nasdaq also higher by week's end. Diesel hit a record $6.52 per gallon earlier in the week, and the Trump administration's floated ban on diesel exports rattled energy traders before oil dipped late on ceasefire rumors.

Economists warned a diesel export ban would likely backfire, driving global prices higher while eventually forcing U.S. refiners to cut output of other products. Bond yields, meanwhile, pushed past 5% to settle around 5.1%, raising borrowing costs even as new home sales for August beat expectations at 684,000, still down 2% from a year earlier.

Consumer sentiment slipped to its lowest point in four months and nearly 13% below last year, according to the University of Michigan survey, with the drop showing up across all political and demographic groups. Survey director Joanne Hsu tied the decline to fears that high fuel prices and renewed trade disputes could ripple through the broader economy.

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