The Dow Jones Industrial Average, S&P 500 and Nasdaq rose moderately today even as worries about rising bond yields and a surge in oil prices are top of traders' minds.

Here is what is driving the markets today:

Bonds, treasuries and a global selloff: The bond market is dramatic again today. And it's global. Japanese 10-year yields reached 30-year highs. German 10-year yields neared 15-year highs. The 10-year Treasury yield hit its highest level since 2023 overnight. Trump administration officials chimed in. Treasury Secretary Scott Bessent at the G-20 played down the rout, saying, "I don't think we are in any kind of dire situation." Commerce Secretary Howard Lutnick said on CNBC this morning that he expects rates to fall in the next six months. Treasury yields pared gains.

War, huh! What is it good for? Increasing oil prices: U.S. and Iranian tit-for-tat strikes have pushed Brent crude higher this week. Oil now costs around $94 a barrel, adding more inflationary pressure. Which leads us to...

Between inflation and a hard place: Investors are now setting odds of a Federal Reserve interest rate hike at 70%. That's up from 37% just a week ago, according to CME Group data. However, New York Fed President John Williams said he doesn't see clear-cut evidence the Fed must raise interest rates to tamp down persistent inflation.