The 10-year yield jumped 16.2 bps to 5.110%, highest since June 2007, after a hot flash PMI (58.4) and a weak 5-year auction. Stocks fell with bonds: S&P 500 -0.75%, Russell 2000 -1.77%. Fed’s Barr: further adjustments “likely to be needed”; October hike odds near 73%. Brent surged 4.43% back above $100 on Iran’s UN defiance despite a US crude build. McDonald’s sank 4.81% on flat-traffic guidance. Bessent is “open” to extending the China truce before Thursday’s Xi summit.
MIB Daily: The 10-Year Hit 5.11%, Its Highest Since 2007, as a Hot PMI Turned Good News Into Rate Risk and Brent Topped $100, Leaving Stocks With No Bond Hedge and Small Caps and Utilities Hit Hardest
MIB: Ceasefire Collapse, Productivity Miss, and FOMC Dissent Fracture the Bull Case
Iran accused US forces of ceasefire violations, reversing Wednesday’s record rally — WTI +2.71% to $97.66, S&P 500 –0.38%, 10-of-11 sectors red. Q1 nonfarm productivity hit +0.8% (biggest miss since 2023) with ULC at +2.3% and real wages turning negative. Hammack called the FOMC’s rate-cut signal “misleading,” formalizing the 4-dissenter bloc — hike optionality is live. Challenger April cuts +38% MoM with AI driving 26%, collapsing Friday’s NFP consensus to ~60K. Boeing CEO joins Trump’s China delegation; 600-aircraft deal speculation lifts BA.
MIB: January PPI Beats, China Tariffs Escalate, Iran Risk Surges, and Dell Defies the Tech Rout
Hot PPI (+0.5%) ignites stagflation fears, sending Dow -521 pts and 10Y yield below 4% for first time in 4 months. Trump announces extra 10% China tariff effective March 4. S&P 500 logs worst February since March 2025 on AI-inflation-tariff triple threat. Gold surges to $5,200+ record as US evacuates Israel embassy staff on Iran war fears. Dell (DELL +16.64%) bucks the selloff with record $9B AI server quarter.
