Peakfolio Team
Sep 1, 2025
Between August 25 and September 1, U.S. stocks pulled back as bond yields rose to multi-month highs, reigniting concerns about equity valuations and interest-rate persistence.
The week opened on a cautious note, with investors digesting a steady flow of data pointing to lingering inflation pressures. By midweek, the 10-year Treasury yield climbed above 4.6%, prompting a rotation out of growth and tech stocks. The S&P 500 and Nasdaq both lost ground, while financials and energy shares provided some offset amid rising rate expectations.
Analysts characterized the move as a recalibration rather than panic selling. Corporate earnings remain solid, but with rates expected to stay elevated longer, markets are adjusting to tighter financial conditions. As September begins—a month historically known for volatility—investors are watching whether renewed yield strength tests the market’s summer uptrend or simply marks another consolidation phase.