US stock market hits new highs as bond market falls
Updated
Updated · The New York Times · May 7
US stock market hits new highs as bond market falls
11 articles · Updated · The New York Times · May 7
After a rough March, US stocks erased losses since the Iran war began, while oil-linked Treasury yields climbed and bond prices dropped.
Investors have kept backing listed US companies' profit prospects despite higher oil prices, inflation and intermittent violence in the Persian Gulf.
International markets have also rebounded and outperformed US stocks this year, but diversified investors' gains have come mainly from equities, with strategists expecting the split to persist.
With stocks soaring on AI hopes and bonds sinking on war fears, which market is correctly predicting the future?
As traditional portfolios falter, are inflation-linked bonds the only true safe haven in this new era of conflict?
Is the massive AI boom creating a speculative bubble that ignores the real economic risk of global stagflation?