Stock Market Investors Get an Urgent Warning From the Bond Market. History Says This Will Happen Next.

Treasury bond yields surged to 19-year highs in May as investors anticipate Federal Reserve rate increases due to elevated core inflation driven by energy price shocks from the Iran war. Historical precedent suggests that the last time 30-year Treasury yields reached 5.18% (July 2007), the S&P 500 and Nasdaq fell 21% and 18% respectively over the following year. Analysts warn that rising bond yields could trigger significant stock market corrections and potentially recession.