Higher Yields Pressure Stocks as Bond-Market Concerns Spread
A selloff in U.S. and European government bonds deepened, pushing yields higher and contributing to a losing session for stocks. U.S. stock futures were little changed afterward as investors assessed how much further yields could rise and how higher borrowing costs might affect equities.
Signs of strain also appeared in lower-rated corporate debt. Bloomberg Law reported that CCC-rated debt entered distressed territory for the first time since the 2023 crisis, while reports from Finimize and Tech Times highlighted investor concern about increased corporate borrowing and growing exposure to securities viewed as bankruptcy risks. Deutsche Bank Wealth Management, however, described credit spreads as quietly resilient.
The pressure from rates comes after a third quarter in which market leadership shifted. According to CNBC, the iShares Expanded Tech-Software Sector ETF gained 17%, while the …