Stocks Fall as Global Bond Yields Rise
Global stock markets are retreating amid rising bond yields and inflation concerns. The S&P 500 fell to a 1.5-week low while the Nasdaq 100 dropped over -1%. Rising crude oil prices, driven by ongoing tensions in the Middle East, have pushed key global bond yields—such as Japan’s JGBs, Germany’s Bunds, and U.S. T-notes—to multi-year highs. U.S. economic data was mixed: housing starts declined sharply while building permits rose to a 5-month high. Import prices also exceeded expectations, adding pressure on inflation fears. Political tensions between the U.S. and Iran remain unresolved after an attack near Hormuz Strait heightened oil price volatility. President Trump has ruled out extending negotiations with Iran. Despite today’s market weakness, strong Q2 earnings growth is expected to support stocks in coming weeks. The S&P 500 is on track for nearly 32% earnings growth, driven largely by AI infrastructure spending.
Topics: bond_yields inflation_concerns oil_prices stock_indices