Finance

Bond prices slumped as the 10-year Treasury yield climbed to 4.76%, hitting its highest intraday mark since January 2025. This surge followed recent comments from Federal Reserve Chairman Kevin Warsh at the Jackson Hole symposium. Traders are heavily pricing in a higher likelihood of an interest rate increase at the upcoming September meeting to control sticky inflation.

Despite the daily slide triggered by geopolitical tensions, the major U.S. benchmarks are on track to lock in solid monthly gains. The tech-heavy Nasdaq Composite and the S&P 500 have advanced roughly 4% and 3% respectively through August, breaking a two-month losing streak. Concurrently, the Dow Jones Industrial Average is poised to secure its fifth consecutive positive month.

Shares of Edison International and PG&E Corp. both tumbled by approximately 20% in early trading. The sharp selloff occurred after state lawmakers turned down a proposal by Governor Gavin Newsom intended to cap utility exposure to wildfire insurance claims. The downturn has dragged the stock performance of both major utilities into negative territory for the year.