- Stocks fell broadly after the 10-Yr Treasury yield surpassed 5%, raising fears that rising borrowing costs will stifle economic growth.
- The 10-year yield increased 11 basis points to 5.02%, the highest since 2007. The Stoxx 600 index in Europe fell 0.7%, reaching its lowest intraday level since March. Futures on the S&P 500 fell 0.5%. Copper, regarded as a barometer of the global economy, has dropped to its lowest level in nearly 11 months.
- The speed and severity of the bond selloff has Wall Street's attention as earnings season begins. With US data showing a strong economy and Federal Reserve speakers emphasizing the importance of keeping interest rates high until inflation subsides, many investors are becoming more bearish on risk assets.
- According to Morgan Stanley's Michael Wilson, the chances of a year-end rally in US stocks are fading as investors face a slew of risks, ranging from higher profit estimates to the Federal Reserve's tightening of policy.
