Markets · September 1, 2026 · 1 min read

Global Bond Rout Drags Stocks Lower as Fed Hike Bets Build

Published September 1, 2026

Treasury and global bond yields surge to multi-year highs, pulling stocks lower as Fed rate-hike odds climb ahead of the September 16 meeting.

**Treasury yields hit fresh highs, equities slide:** the 10-year yield climbed to 4.79% Tuesday — a fifth straight session of gains and the highest since January 2025 — while the 30-year sits at its most persistently elevated level since 2006. The S&P 500 fell 0.68% to 7,633.94, the Dow lost 426.95 points (-0.80%) to 52,758.95, and the Nasdaq dropped 0.93% to 26,126.62 as rate-hike odds for the September 16 FOMC meeting rose to roughly 55%, up from about 40% a week earlier, following Fed Chair Kevin Warsh's hawkish Jackson Hole remarks. **The selloff turned global overnight:** Japan's 10-year yield touched 3% for the first time since 1996, Germany's 10-year bund rose to 3.34% — its highest since 2011 — and UK gilts led declines across Europe. Analysts point to Middle East oil-driven inflation fears, U.S. government debt above $40 trillion, and heavy AI-infrastructure borrowing as the common threads pushing yields up in tandem worldwide.

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