Oil Is $100, The 10-Year Is Near 5%. Why Doesn’t The Stock Market Care?
Oil Is $100, The 10-Year Is Near 5%. Why Doesn’t The Stock Market Care?
Source: Barchart
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DW NOTE
The S&P has fallen 1.92% this month while oil jumped 23.28% and the 10-year hit 4.95%. The market cares — it's just pricing two offsetting forces. Energy shocks compress margins; rising yields discount future cash flows. The real question isn't why stocks haven't crashed, it's why anyone thinks a 1.9% drawdown during a supply shock that's cut global oil output by 6% represents complacency. Equity investors are watching the Fed, not the Strait. They'll regret that if the September 16 hike lands while crude stays above $100.