Finance

Despite a brief pause late in the week, the U.S. 10-year Treasury yield continuously hovered near 19-year highs, touching up to 5.23%. This global bond sell-off is being driven by persistent inflation concerns, high government debt volumes, and market expectations that the Federal Reserve will raise policy rates again in the near future.

The University of Michigan consumer sentiment index slumped to its lowest level in four months as Americans express deep concerns about the trajectory of inflation. The survey noted that some consumers are rushing purchases of major goods ahead of anticipated price increases, which analysts fear could inadvertently cause retailers to raise prices further.

Robust corporate balance sheets and positive financial updates have provided a vital cushion for equity markets amid macroeconomic volatility. Notably, Costco Wholesale reported stronger-than-expected quarterly revenue and profits, leading its shares to jump nearly 3% and boosting broader investor confidence.