Part 5/11:
Financial Markets: Volatility, Bonds, and Commodities
Stock markets exhibited volatility due to macroeconomic tensions, including tariffs, regional bank stress, and interest rate fluctuations. Despite strong corporate earnings, markets are reacting cautiously, attributed to FOMO (Fear of Missing Out) and concerns over potential margin calls among highly leveraged traders.
Bonds experienced a rally, with the 10-year Treasury yield dropping below 4% — currently at 3.97% — hinting at investor flight to safety amid geopolitical tensions and economic uncertainties. The outlook suggests continued decline towards 3.75%, especially as the Fed's rate cut expectations influence bond markets.