Major Averages Hit or Near Record Highs Even as Private Credit Shows Further Strains

Equities receive tailwind from lower oil prices and bond yields

Key Takeaways

• Powerful Equity Tailwinds From Lower Oil Prices and Yields: The mix of stocks and bonds sure did pay off last week. The 10-year Treasury yield fell -9 basis points to 4.66%. In the aftermath of Friday’s weak jobs report, markets are now leaning against a September rate hike. Sliding oil prices, on hopes of the Strait of Hormuz being reopened (but on Iranian terms, of course), and declining Treasury yields have acted as a powerful stock market tailwind recently.