$700 BILLION WIPED OUT OF U.S. STOCKS.
The real warning is coming from the bond market.
The U.S. 30-year Treasury yield has surged toward 5.5%, reaching levels not seen since 2004.
This isn’t just another market move.
Oil-driven inflation fears, resilient economic data, massive government borrowing, and expectations of tighter Fed policy are pushing long-term yields higher.
And that changes the entire equation for equities.
Higher yields mean higher borrowing costs.
Higher yields mean lower valuations.
Higher yields mean greater pressure on long-duration growth stocks.
When Treasury yields move this aggressively, Wall Street doesn’t ignore it.
Capital is repriced.
Risk is repriced.
Stocks are repriced.
The market is now facing a much bigger battle:
Stocks versus bonds.
And the bond market is setting the tone.
The real warning is coming from the bond market.
The U.S. 30-year Treasury yield has surged toward 5.5%, reaching levels not seen since 2004.
This isn’t just another market move.
Oil-driven inflation fears, resilient economic data, massive government borrowing, and expectations of tighter Fed policy are pushing long-term yields higher.
And that changes the entire equation for equities.
Higher yields mean higher borrowing costs.
Higher yields mean lower valuations.
Higher yields mean greater pressure on long-duration growth stocks.
When Treasury yields move this aggressively, Wall Street doesn’t ignore it.
Capital is repriced.
Risk is repriced.
Stocks are repriced.
The market is now facing a much bigger battle:
Stocks versus bonds.
And the bond market is setting the tone.