Wall Street Notches Records, Then Bonds Slam Stocks Back Down
Bonds are slamming stocks just days after Wall Street set fresh records. A global bond selloff is now pushing borrowing costs to multi-decade highs.
The S&P 500 and Nasdaq Composite fell to two-week lows on Tuesday. In contrast, long-dated Treasury yields jumped to their highest levels in nearly two decades.
Records, Then a Reversal
The S&P 500 closed at a record 7,798.99 on Aug. 13. Cooling inflation data and strong AI-linked earnings had powered that rally.
The Dow Jones Industrial Average had also set an AI-earnings record close alongside the S&P 500 on Aug. 5. However, the mood flipped just days later.
The Nasdaq Composite slid to a two-week low as semiconductor stocks tumbled, denting a record-setting 2026 rally.
How Bonds Are Slamming Stocks
The US 10-year Treasury yield climbed to 4.748%, its highest since January 2025. The 30-year yield reached 5.33%, its highest level in 19 years.
The rout is not just American. Japan's 10-year government bond yield reached a 30-year high of 2.945% this week.
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