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Markets · September 1, 2026 · 1 min read

Global Bond Rout Drags Stocks Lower as Fed Hike Bets Build

By Econ Data Tools Editorial Team

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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