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Investment Daily: US stocks edged lower amid high bond yields and oil prices

8 October 2026

Key takeaways

  • US stocks fell; Treasury yield curve steepened slightly.
  • European stocks and government bonds fell.
  • Asian stocks broadly fell.

Markets

US stocks edged lower on Wednesday, amid high bond yields and oil prices. The S&P 500 dipped 0.2%. 

The US Treasury yield steepened slightly amid oil price volatility, supply concerns and a solid 10-year Treasury debt auction result. 10-year yields ended flat at 5.28%. 

European stocks fell on Wednesday after a renewed rise in bond yields. The Euro Stoxx 50 closed 1.5% lower. The German DAX fell 1.4% and the French CAC lost 1.2%. In the UK, the FTSE 100 ended 0.8% lower.

European government bonds mostly fell. 10-year German Bund yields dipped 1bp to 3.47%, while 10-year French bond yields jumped 12bp to 4.87%. In the UK, 10-year gilt yields rose 7bp to 5.44%.

Asian stock markets fell on Wednesday amid renewed concerns over high bond yields and oil prices, with tech shares leading regional losses. Japan’s Nikkei 225 and Korea’s Kospi lost 0.9% and 2.0%, respectively. Hong Kong’s Hang Seng was down 0.6%, while India’s Sensex ended 0.6% lower after the RBI’s expected 25bp rate hike.

Crude oil prices traded lower on Wednesday. WTI for November delivery fell 1.3% to USD88.3 a barrel.

Key Data Releases and Events

Releases yesterday

The Reserve Bank of India (RBI) raised its policy rate by 25bp to 5.50% and shifted its policy stance from “neutral” to “calibrated tightening”, signalling scope for further rate hikes depending on incoming inflation and growth data.

Releases due today (8 October 2026)

In Mexico, headline inflation is expected to rise to 3.5% yoy in September from 3.3% yoy in August.

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