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The 30-year Treasury bond yield recently reached its highest level since 2007, sparking concern about a stock market sell-off. Long-term investors shouldn't worry too much about short-term moves in bond yields.
Brent crude stays above $100, S&P futures climb
"Escalation is the word of the day" after the U.S. hit five Iranian oil tankers near the Strait of Hormuz. Kevin Hincks points to crude oil's steady rise near $96 Wednesday morning as the key metric to watch, a level not seen since early June.
US stocks may have further room to rise despite elevated valuations, as the earnings and productivity gains generated by artificial intelligence are not yet fully reflected in equity prices, according to HSBC's Willem Sels. According to Bloomberg, Sels, global chief investment officer at HSBC Private Bank and Premier Wealth, said investors remain skeptical about the sustainability of corporate earnings growth, particularly among technology and semiconductor companies.
The Fed is likely to be less concerned that a rate hike will damage the labor market.
The S&P 500 has risen about 2.6% since late June despite a global bond market selloff that pushed 10-year Treasury yields to a high of 4.815%.
The 10-year Bund yields reached their highest since 2011 and yields on U.K. 10-year government bonds climbed to their highest level since 2007.
Many factors are sending yields higher, but rising energy costs are the inflationary trigger