Thursday's Final Takeaways: SEC Focuses on Crypto Regulation, Diesel Prices Hit Transports

Marley Kayden (0:01)

Welcome back to Market Unclosed. I'm Marley Kayden here in our Chicago headquarters. Some final thoughts on today's session. We saw yields and oil prices move lower today, giving the market a break and helping it bounce back from its losses yesterday. We saw the 10-year yield jump above 5% after the FOMC decision. Today, it's fallen more than five basis points to about 4.95%.

Oil prices also dropping as supply concerns ease following Saudi Arabia shifting some of its crude exports to Hormuz as its pipeline remains temporarily closed. WTI fell to $100 a barrel early in this session. It now sits just a little north of $101 a barrel, while we are looking at Brent holding just above $104 a barrel. And while we're talking about oil, record diesel prices becoming a growing concern for the US economy. Diesel hitting an all-time high of $6.31 a gallon as the Iran War keeps oil prices elevated. The pressure is being felt first by trucking and rail companies, but economists say that those higher transportation costs could eventually filter through supply chains and push up prices across the broader economy. One estimate says that customers can expect to pay as much as 31 percent more this winter to heat their homes if prices stay at current levels. And looking now to the Clarity Act, it may have failed to advance in the Senate this week, but the SEC is wasting no time trying to build a regulatory framework for the crypto industry. The agency has cleared a path for tokenized US stocks to trade on blockchain networks through a new time-limited exemption, potentially bringing 24-7 trading of equities closer to a reality. The SEC says that the move is designed to allow innovation while preserving traditional shareholder rights, including dividends and voting, and it excludes synthetic tokens that simply track stock prices. The broader significance here is that even without new legislation from Congress, regulators are moving ahead with ways to integrate blockchain technology into traditional US capital markets. Now, as we head into tomorrow, we are going to continue keeping a close eye on yields and on oil prices, but we also have some Fed speak. It starts with Michelle Bowman right after the market opens. Then we'll hear from Kansas City's Jeff Schmid. Now, we know this week's decision was unanimous, but as this could be a part of a broader hiking cycle, Fed watchers will be keenly tuned in for any clues on how each of the individual voters is looking at the path forward, looking at inflation, looking at where these higher oil prices come into play. So those may have a bit more focus than usual, but that is going to do it for us today on Market On Close. I'm Marley Kayden. Be sure to download our Schwab Network app available in the Apple App Store, and you can tune in 24-7 on schwabnetwork.com.

Thank you so much for being with us today. I hope you'll join us again tomorrow. Have a great rest of your day.