Chinese officials are expected to be in Washington this week to hold consultations with the U.S. ahead of high-level trade talks in October.World Economyread more
Saudi Arabia's defense spending is the world's third-largest — behind the U.S. and China, says Gary Grappo, former U.S. ambassador to Oman.Energyread more
President Donald Trump said Monday he's in no rush to respond to a coordinated attack that hit Saudi Arabia's oil industry over the weekend.Marketsread more
The price of oil could go sharply higher, depending on the duration of the disruption at Saudi oil facilities and whether there is a military response.Powering the Futureread more
Energy stocks, one of the worst-performing sectors this year, spiked Monday after an attack on Saudi Arabia's heart of oil production Saturday sent oil prices soaring.Marketsread more
The Saudi-led military coalition battling Yemen's Houthi movement said on Monday that the attack on Saudi oil plants was carried out by Iranian weapons and did not originate...Oilread more
After a series of setbacks on the road to an initial public offering, the parent company of real estate start-up WeWork is delaying the move, sources told CNBC Monday.Technologyread more
"The United States military, with our interagency team, is working with our partners to address this unprecedented attack and defend the international rules-based order that...Politicsread more
Crude oil's spike following attacks on Saudi Arabia's energy supply has experts weighing whether or not the gains will last.ETF Edgeread more
"In the old days, the averages would've plunged on this kind of oil shock. I know because I've lived through a bunch of them, starting in 1973," Jim Cramer says.Mad Money with Jim Cramerread more
Traders in the fed funds futures market on Monday were pricing in a 34% chance that the Fed will stay put on rates.The Fedread more
Warren Buffett believes interest rates are critical in determining stock valuations.
The Dow Jones Industrial Average plunged more than 1,300 points in two days as investors worried about the negative effects from the rising interest rate environment.
"The most important item over time in valuation is obviously interest rates," Buffett said last year. "If interest rates are destined to be at very low levels. … It makes any stream of earnings from investments worth more money."
Investors use U.S. government bond yields as their "risk-free" discount rate in financial models to value stock investments.
"The bogey is always what government bonds yield, you can pick your maturity. And you see it in real estate. Real estate yields adapt quite quickly and fairly directly with interest rates," he added. "It's the same principle [with stocks]."
On Tuesday, the 10-year note yield traded above 3.25 percent, hitting its highest level since 2011. The move occurred about a week after Federal Reserve Chairman Jerome Powell said in an interview with PBS that the central bank is a "long way" from getting rates to neutral, which pointed to a possibly more aggressive path for rate hikes.
The Oracle of Omaha said when interest rates rise to high levels such as more than 15 percent for the 2-year Treasury note in the early 1980s, it makes higher equity valuation multiples much less attractive.
"Any investment is worth all the cash you're going to get out between now and judgment day discounted back. The discounting back is affected by whether you choose interests rates like those of Japan or interest rates like those we had in 1982," he said in 2017. "When we had 15 percent short-term rates in 1982, it was silly to pay 20 times earnings for stocks."