US Treasury Yields Hit 20-Year High Amid AI Stock Surge
US Treasury yields reached a multi-decade high while AI-driven gains pushed the Nasdaq to record levels and sparked multi-billion dollar corporate acquisitions.
U.S. 10-year Treasury yields climbed to 5.31%, the highest level since 2002, driven by persistent inflation and high federal debt. Despite the bond market selloff, the Nasdaq Composite hit a record high of 27,477.31. This growth was led by Nvidia, which reached a record share price of $238.90 and a market capitalization exceeding $5.7 trillion, alongside gains from Microsoft.
Corporate activity remained aggressive with several large-scale deals. C.H. Robinson announced the acquisition of trucking brokerage RXO for $5.8 billion in cash and stock to integrate artificial intelligence into freight efficiency. Simultaneously, Schneider Electric agreed to acquire software company PTC in an all-cash deal valued between $22.6 billion and $23.7 billion.
In government and policy, the Trump administration is preparing to ease restrictions on red-dyed diesel to lower costs for farming and construction before the midterm elections. Meanwhile, the Supreme Court of the United States opened its new term with a case regarding energy company liability for climate-related costs.
Global markets faced additional volatility as the Euro fell to its weakest level against the dollar since May 2025, pressured by a debt crisis and bond sell-offs in France and snap elections in Spain. In the energy sector, Saudi Aramco warned that Middle East conflicts have depleted global oil inventories, prompting the Group of Seven to agree to release 100 million barrels from emergency stockpiles.
