Brent tops $90 as chips give back their bounce

Wall Street found no clear direction yesterday. Stocks edged lower to start the week, and chip stocks bounced in the morning before giving back the gains. After last week's steep drop, some see bargains and others expect more pain. The big banks disagree too: JPMorgan sees a summer chance to buy chips, while Morgan Stanley expects a tough rest of the year for the sector.

Oil weighed more heavily. With the US hitting Iran for a ninth day and Tehran retaliating against US bases and Gulf shipping, Brent jumped as much as 4% to top $90, and US gasoline is back above $4 a gallon. Still, some analysts note that oil has not spiked as high as feared, even after five months of war.

On policy, President Trump signed an order adding 50% tariffs on a wide range of Canadian goods, from hockey sticks to cement and wine, with energy and some other items exempted. It reopens a trade fight with the largest US trading partner.

Warning lights are also flashing on rates and debt. The 30-year Treasury yield is 5.06%, its highest since 2007, and margin debt hit a record $1.5 trillion. One forecaster expects the Fed to sit still all year, while markets price better than even odds of a September hike.