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Stocks hold up in Q3 2026 despite record diesel prices and rising bond yields, but risks grow from complacency.

Market News
02 Oct 2026
Seeking Alpha
View Source
Bearish
Stocks hold up in Q3 2026 despite record diesel prices and rising bond yields, but risks grow from complacency.

In Q3 2026, equities remained surprisingly resilient despite challenges like record-high diesel prices and a sharp rise in treasury yields, with the 10-year treasury yield increasing by 87 basis points—the largest quarterly jump since 1994. However, the S&P 500 is heavily concentrated, with about 450 stocks down at least 20% from their highs, signaling uneven market strength. The equity risk premium has deepened its discount, reminiscent of pre-2007 crisis complacency, raising concerns that investors may be underestimating risks ahead. Higher yields are expected to negatively impact the economy and markets going forward, suggesting caution for investors.

The return of the bond vigilantes is the subject, with Pluang market data as context. As of Oct 02, 2026 21:21 WIB, among 150 priced US stocks tradable on Pluang, 100 rose and 49 fell today. Notable movers include ACN at USD 202.35 with a 1-day change of -4.69%, CVNA at USD 65.83 up 4.43%, and AMD at USD 641.87 up 4.24%.

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