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(Bloomberg) — Treasury yields rose and stocks fell on the eve of the Federal Reserve decision, with the recent rally in oil prices bolstering bets interest rates will be higher for longer to prevent an inflation flare-up. Five-year US yields hovered near the highest since 2007. Aside from bets the Fed will deliver a hawkish hold Wednesday, traders also cited hot Canadian inflation data. Brent oil briefly topped $95 a barrel. The S&P 500 extended its September drop. Instacart surged as much as 43% in its Nasdaq debut. Walt Disney Co. slid on plans to nearly double its theme-park spending to $60 billion over the next 10 years. Read: GLOBAL INSIGHT: $100 Oil? What It Means for Fed, ECB, BOE Rates Fed Chair Jerome Powell and his colleagues are widely expected to hold rates steady Wednesday. Still, supply shocks such as climbing oil prices present the central bank with a quandary as they simultaneously boost inflation and curb economic growth. Surging energy costs played a role in tipping the US into recession in the mid-1970s, as well as the early 1980s and 1990s. “The risks for headline inflation to heat up over the next couple of months are rising […]
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