The surge in bond market volatility has created a divergence with the S&P 500, which has not declined despite the turmoil. While Treasury yields rose and credit default swaps for tech companies widened, equities remained stable, prompting market observers to question if a correction is imminent.
Tuesday, October 20, 2026
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S&P 500 Shrugs Off Bond Market Warning
US Markets24 days ago
The ICE BofA MOVE Index surged 21% Wednesday to reach its highest level since March, the largest daily jump in months. This move contributed to the most significant weekly spike in U.S. Treasury volatility in over a year, with the index rising nearly 30% as long-term yields hit multi-decade highs. Investors now price in a 70% chance of a Federal Reserve rate hike in October, up from virtually zero at the start of September, following hotter economic data and higher oil prices.
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