Bond Market COLLAPSE Sends Shockwaves Through Stocks
Wednesday delivered a major reversal in the markets as a sharp selloff in bonds pushed bond yields to multi-decade highs. The move effectively erased most of the bullish signals generated from Tuesday, with TLT and XBB rolling over while emerging-market and junk bonds remained on sell signals. Higher U.S. rates also strengthened the U.S. dollar and triggered sharp declines in the Canadian dollar, euro, British pound, Australian dollar, Japanese yen, and Mexican peso.
The weakness spread into stocks, gold and silver, with many securities returning to sell signals. Canadian markets closed below their lower channel lines, while financials and materials were among the major losers. In the U.S., the S&P 500 and NASDAQ showed no trend change, but small caps and several major stocks weakened. With stock index futures continuing lower Thursday morning, the key focus is whether new sell signals develop and whether important support levels can hold.
Stephen Whiteside
Thursday, September 24, 2026
