Global Stock Indexes Fall as Bond Yields Surge Near 2002 Highs

Stock markets around the world are dropping as big changes in the global bond market push the 10-year Treasury yield close to a high not seen since 2002. These rising yields are hurting major stock indexes, with the S&P 500 heading toward steady losses. The drop comes even as optimism around artificial intelligence and some strong technology shares try to hold things up. At the same time, oil prices are going up. This increase in the cost of oil is adding to ongoing inflation problems around the world. The higher bond yields are also causing worry for real-estate stocks, which tend to struggle when borrowing costs go up. Even with these economic hurdles, recent reports show that the US economy is holding up well and showing strength despite the ongoing challenges.

Market Winners

Not all areas of the market are falling. Technology stocks are showing some power, helped by strong quarterly profit numbers from Micron Technology that came in better than expected.

Context

Bond yields and stock prices often move in opposite directions because higher returns on safe government bonds make investors pull money out of riskier stocks. When oil prices go up, it pushes the cost of fuel and goods higher, which keeps inflation sticky and makes central banks keep interest rates elevated.