The dollar found support as global stocks slid for a third straight session, with bond yields surging to multi-decade highs and rising oil prices adding fresh pressure on risk sentiment.
The S&P 500 declined for a third consecutive session, pressured by a jump in sovereign bond yields to multi-decade highs and renewed inflation concerns tied to elevated oil prices. The US 30-year Treasury yield touched a fresh 19-year high, while Japan’s 10-year yield reached its highest level in three decades and Germany’s 30-year yield hit levels not seen since 2011.
Weakness was particularly pronounced in semiconductor names, with several major chipmakers falling sharply and dragging the Nasdaq Composite down more than 1% on the session. As equities sold off, the dollar drew fresh demand as a liquidity haven, edging higher even as the broader macro backdrop of fading Fed rate-hike expectations continued to weigh on it over the prior week.
Crude oil’s climb to a three-week high added another layer to the inflation narrative unsettling bond markets, feeding into the same rising-yields dynamic pressuring equities. The combination of a wobbling stock market and a firmer dollar illustrates how quickly risk sentiment can override rate-differential-driven currency trends when volatility picks up across other asset classes.
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