The biggest story in finance is that longer-term bond yields are rising. The yield on the 10-year Treasury, at about 4.7%, is the highest since April, even though the Federal Reserve’s overnight rate is now a percentage point lower than it was then.

Investors have shifted from thinking higher Treasury yields are an unwelcome side effect of the stronger growth promised by Trump, to worrying that higher borrowing costs might end up being very important.

There’s room for stock markets to fall further as bond yields approach levels that have been painful for equities in recent years.

Markets see just one rate cut coming in 2025 amid a confluence of strong economic data and the potential for Trump's economic plans to stoke inflation.