Rising Yields Are Wreaking Havoc on Stocks Outside the AI Trade

Live updates

1. 1h ago

   Rising Treasury Yields Pressure Non-AI Stocks as 10-Year Hits 5.34%

   U.S. Treasury yields have reached multi-decade highs, with the 10-year yield hitting 5.34%, the highest level since 2002. While AI-driven megacap tech stocks maintain the resilience of headline indexes like the S&P 500, rising yields are causing a selloff in other equity sectors. Equal-weight S&P 500 prices have fallen alongside 10-year note futures since August, indicating a lack of market breadth. Traders are currently debating when the bond selloff will cause broader pain for the overall U.S. stock market.

   Why it matters

   Bond yields typically compete with stocks for investor capital, making higher yields less attractive for equities. The current divergence shows AI spending acting as a buffer against macro pressures like inflation and rising oil prices. This split creates a market where headline indexes remain steady while most individual stocks struggle.

   What is confirmed

   • The 10-year Treasury yield rose to 5.34%, the highest level since 2002.
   • AI-led megacap tech stocks are keeping the S&P 500 resilient despite higher bond yields.
   • Bond yields have reached 24-year highs.

   Still unconfirmed

   • A global bond selloff fueled by higher oil prices and inflation concerns pushed the S&P 500 to a two-week low on Thursday.

   What to watch next

   • Further movements in the 10-year Treasury yield beyond 5.34%
   • Earnings growth reports for the S&P 500
   • Changes in AI-related capital spending by megacap tech companies
   Sources used for this update (18)

   1. CNBC — Stocks making the biggest moves premarket: Alphabet, Accenture, Rocket Lab, Micron and more
   2. Seeking Alpha — Macro Insights: 5% Yield, AI Spending Sanity, And The Bullish Counter-Thesis
   3. The Motley Fool — The 10-Year Treasury Pays 5.2%. The S&P 500 Only Needs 4% Earnings Growth to Keep Up.
   4. CNBC — Here are Thursday's biggest analyst calls: Nvidia, Apple, Netflix, Micron, Amazon, Meta, Toll Brothers & more
   5. Bloomberg.com — Rising Yields Are Wreaking Havoc on Stocks Outside the AI Trade
   6. CNBC — Friday's big stock stories: What’s likely to move the market in the next trading session
   7. TipRanks — Why the S&P 500 Could Still Reach New Highs despite 5% Treasuries
   8. www.businessinsider.com — Why stocks have held up as yields surge to 24-year highs
   9. Golf Channel — 2026 Bank of Utah Championship: Round One
   10. MarketWatch — Why the alternative to the ‘clear and present’ danger from bond yields is this AI-fueled market that has quietly outperformed
   11. inc.com — The Stock Market Rose 13 Percent as Treasury Yields Hit 5 Percent. The Usual Rules Didn’t Apply
   12. www.gulf-times.com — tag - Gulf Times
   confidence 90%