US stocks took a hit as President Donald Trump’s threat to impose tariffs on Apple Inc. and the European Union sparked renewed trade tensions. However, market experts say it was a significant increase in bond yields that has been drawing attention this week.
The yield on the 30-year Treasury bond surged sharply, signaling a shift in investor sentiment. This move is often seen as a warning sign for the stock market, as rising bond yields can make stocks less attractive compared to bonds.
Investors are keeping a close eye on these levels, looking for clues about future interest rate hikes and their impact on the economy. As the situation continues to unfold, traders will be watching for any further developments that may affect the markets.
Source: https://www.marketwatch.com/story/rising-bond-yields-give-stock-market-investors-the-yips-watch-these-levels-d8e99584