August 29, 2025
Article from Fortune by Jim Edwards
Article Synopsis
The S&P 500 hit a record above 6,500, but bond markets signaled stress as the gap between two- and 30-year Treasury yields reached its widest in three years. Analysts warn of a “twist steepener” or “bear steepener,” with short-term yields falling on Fed rate cut expectations while long-term yields climb on inflation and fiscal concerns.
The dollar has weakened nearly 10% this year as confidence in U.S. policy credibility erodes, compounded by political interference and structural shocks like tariffs and labor constraints. Global equities were mixed, and Bitcoin climbed above $113K.