Stock and bond markets experience significant volatility in third quarter 2026

U.S. stock and bond markets became more volatile between July and September 2026. Treasury yields rose to levels not seen in decades. The 10-year yield climbed above 5%, and the 30-year yield went above 5.5%, its highest point since 2002. These high yields show that investors expect inflation to stay high and that interest rates could rise further. A military conflict involving the U.S., Israel, and Iran added to the uncertainty, because there were no diplomatic agreements during this period. Governments around the world also sold large amounts of bonds, which pushed yields higher. Despite these pressures, some tech companies did well. Meta and Microsoft both saw their share prices go up during the quarter.