The S&P 500 had closed at a record of 7,798.99 on August 13, fueled by cooling inflation and strong AI-linked earnings, but stocks reversed just days later as bonds sold off sharply. The US 10-year Treasury yield climbed to 4.748%, its highest since January 2025, while the 30-year yield reached 5.33%, a 19-year high, in a global move that also pushed Japan’s 10-year bond yield to 2.945%, a 30-year peak. South Korea’s KOSPI fell 1.5%, Japan’s Nikkei dropped 2.5% and the Philadelphia SE Semiconductor Index tumbled 5%. The gap between short-term and long-term US yields is now the widest in four years, signaling investors are demanding more compensation for long-run risk, amid a record wave of corporate bond issuance totaling nearly $1.7 trillion so far in 2026.
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