Oil, Yields Higher Ahead of "Jobs Week"

Oil spiked more than 3% overnight following U.S.-Iran military escalation, pushing WTI crude to $86 per barrel and Brent to $91. The geopolitical flare-up hit markets as Treasury yields climbed to their highest levels of the Trump presidency—the 10-year note touched 4.75% and the 30-year reached 5.25%—tightening financial conditions and pressuring the Federal Reserve's rate-cutting trajectory.

Pre-market futures opened lower Monday as traders brace for a week packed with labor market data. The calendar includes JOLTS job openings, ADP (ADP) employment figures, weekly jobless claims, and Friday's BLS non-farm payrolls report. The convergence of rising oil prices, elevated yields, and critical employment data creates a high-volatility setup for equity markets, with NVDA (NVDA) and other tech names vulnerable to further multiple compression if inflation concerns resurface.

The week's labor prints will help determine whether the Fed maintains its current stance or signals a longer pause on cuts, making each release a potential catalyst for sharp moves across asset classes.