Stock Market Has Good Reasons ‘To Be Nervous’ As Correction Risk Looms Amid Bond Rout, Warn Experts: ‘Que
“We will see a correction — the question is more when than if, in my opinion,” said Mortier.
Raphaël Thuin, Head of Capital Markets Strategies at Tikehau Capital, expressed concern over the incompatibility of equities at all-time highs and high interest rates and energy markets pricing in a lasting impact on the economy. Thuin suggested that the market is due for a pause.
“Short-term, there are good reasons to be nervous,” he warned.
Bond Rout Threatens AI-Led Rally
A government bond sell-off has driven U.S. bond yields to their highest levels in over a year, as investors fear oil prices above $100 a barrel will fuel inflation and prompt central banks, including the Federal Reserve, to raise interest rates. However, the S&P 500 has continued scaling record highs, fueled by a tech-led rally that began in April after reports of a temporary Middle East ceasefire.
The 10-year Treasury yield has risen 0.28 percentage points since the ceasefire began amid a broader global bond sell-off, while a key market gauge of inflation expectations, the one-year inflation swap, climbed above 4% for the first time since early 2025.
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