Wall Street falls as bond yields, oil prices rise

Oil prices jumped, US bond yields rallied and equities retreated on Tuesday as the US Federal Reserve looked set to raise interest rates, with high inflation and AI concerns dominating market sentiment. Brent crude futures again pushed towards US$110 a barrel, while average diesel prices in the United States struck a record high of just under US$6.27 a gallon, heaping pressure on US President Donald Trump ahead of mid-term congressional elections. "There's no let-up in the volatility rippling through financial markets, with energy prices staying painfully elevated and worries swirling about the knock-on effect for inflation and interest rates," said Susannah Streeter, chief investment strategist at Wealth Club. The yield on the 10-year US Treasury note hit 5.03 percent, a level last seen in 2007 before the global financial crisis, as investors price in a likely hike in US interest rates. The US Federal Reserve began a rate-setting meeting on Tuesday with markets expecting policymakers to pull the trigger on a hike to tackle persistently high consumer prices in the world's biggest economy. Market expectations for a 25-basis-point rate increase have risen sharply after official…