Rising Bond Yields Are Driving US Stocks Toward Correction Territory: Markets Pulse

• European stock markets ended the trading week with significant gains on September 11, 2026. • Market movements were influenced by a slight drop in oil prices and rising expectations for a Federal Reserve interest rate hike.

• Global bonds experienced a widespread selloff as U.S. 10-year Treasury yields climbed to 4.97%. • The surge was driven by oil prices exceeding $100 per barrel and expectations that the Federal Reserve and Bank of Japan will raise interest rates.

• European stocks closed lower on Thursday, September 26, as investors worried about inflation driven by rising oil prices and European Central Bank rate hikes. • The pan-European Stoxx 600 index ended the session down 0.69%, while Germany's DAX saw the steepest decline among major indices at 0.84%.

• EL.En. reported a jump in profit for the first half of 2026, contributing to a 7% increase in its stock price. • Executives expect the second half of the year to be extremely strong due to medical division growth, industrial performance, and a recovery in Italy.

• The European Central Bank is scheduled to raise the deposit rate by 25 basis points to 2.50% on September 10, 2026. • This decision follows a period of elevated inflation, resilient economic growth, and a stable labor market.

• Sweden's centre-left opposition held a slim lead over the ruling right-wing bloc in polls released on September 11 ahead of Sunday's parliamentary election. • The polling results indicate that voters may reject the current government's alliance with far-right parties.

• The U.S. economy maintained full employment through August as nonfarm payrolls added 162,000 jobs. • The unemployment rate remained nearly unchanged at 4.1%, supported by a low supply of available labor.

• European markets focused on AI spending and cloud growth during the morning session on September 11, 2026. • Investors are closely monitoring Oracle's earnings preview, specifically highlighting a $638 billion backlog of orders.

• India's benchmark stock indices are expected to face downward pressure following overnight global economic shifts. • Market volatility is being driven by a combination of high crude oil prices and rising US Treasury yields.

• Global investors are preparing for interest rate decisions from the Federal Reserve, Bank of England, and Bank of Japan during the week of September 14, 2026. • These central bank meetings occur as markets face the combined pressure of rising oil prices and increasing inflation.

• Investors are awaiting the release of the US Consumer Price Index (CPI) report to gauge potential interest rate hikes. • Recent spikes in oil prices have increased the likelihood that the Federal Reserve will raise rates regardless of the CPI data.