Wall Street rate shock spreads amid AI-driven stock rally

The 10-year U.S. Treasury yield came close to 5.4% this week, its highest level since 2002; Brent crude remained above $100 a barrel, and U.K. borrowing costs rose to a 19-year high. Although the S&P 500 hit a record high on Tuesday, only about one-third of its constituents were above their 50-day moving average. Just 27% of Russell 2000 small-cap stocks were above that threshold, and the index had fallen for a fifth consecutive week. Société Générale strategists warned that if the 10-year Treasury yield reaches 6% and oil rises to $150, the S&P 500 could fall by more than 20% next year.