Economy / Markets
Record indexes meet a 5% bond market as earnings season starts
Third-quarter results arrive this week into an unusual market: the S&P 500 has just posted another record week while the 10-year Treasury yield sits above 5%, its highest in more than two decades. Analysts expect index earnings growth near 30%, heavily concentrated in technology. The tension is financing: investors have demanded higher yields to fund the AI build-out, the investment-grade credit default swap index has jumped to its highest since the Iran war began, and refinancing costs rise as that debt matures. Banks open the season on Tuesday.