Yields Are Breaking US Stocks. Here’s Where We’re Trading Instead. September 25, 2026

— Ben, Find Better Trades

That Treasury yield move today? It’s a gut punch for US equities. The market’s telling us something loud and clear right now. You can’t ignore this.

What Just Happened

Treasury yields just surged again. This makes risk-free bonds incredibly attractive, pulling capital directly out of equity markets. It’s a simple shift: why take stock risk when bonds pay well?

Higher yields also mean companies face much steeper borrowing costs. This impacts everything from expansion plans to refinancing existing debt. It directly hits corporate profitability and future growth projections.

US stocks are definitely facing hurdles because of this bond yield pressure. Goldman Sachs’ global head of hedge fund coverage just pointed to Japan as a potential alternative. They’re seeing opportunities there that aren’t bogged down by our yield issues.

What It Means for Your Trades

This yield spike puts growth stocks and highly leveraged companies squarely in the crosshairs. Their future earnings are worth significantly less today, and their debt just got more expensive to service. Expect continued pressure on these names.

On the flip side, value plays and companies with robust free cash flow might hold up better. These businesses are less sensitive to higher rates and have strong balance sheets to weather the storm. Look for those solid, established names.

The ‘AI-fueled market’ is quietly outperforming despite these macro headwinds. This isn’t just a US phenomenon. Innovators in AI, regardless of their geographical base, continue to attract significant capital and attention. That powerful trend isn’t stopping because of a bond move.

And Japan? It’s definitely on the radar now. If US stocks are stuck in a yield-driven grind, international markets with different economic drivers become much more appealing. Goldman isn’t the only one noticing the divergence in performance.

My Take

I’m absolutely cautious on broad US market exposure right now. The yield pressure is real, it’s persistent, and it’s not going away overnight. You simply can’t fight the bond market.

But that doesn’t mean you sit on your hands or panic sell everything. This is about being highly selective and agile. I’m bullish on specific pockets of strength, especially in the global AI sector and potentially in Japanese equities.

The market always finds a way to generate returns somewhere. Your job is to find that ‘somewhere’ and trade it. It won’t be the broad S&P 500 until these yields settle down. Conviction: high

Macro Pulse FAQ

Q: Why are higher Treasury yields bad for stocks?

A: Higher yields mean bonds offer a better, lower-risk return, making stocks less attractive by comparison. They also increase borrowing costs for companies, which directly eats into their profits.

Q: Should I sell all my US tech stocks?

A: Not all of them, but be extremely selective. Focus on the strongest AI innovators with solid fundamentals that can absorb higher rates; the weaker, speculative tech names will get crushed.

Q: What’s the deal with Japan, why is Goldman Sachs mentioning it?

A: Japan’s market dynamics are currently less tied to rising US yields. It offers diversification and potentially better growth prospects if US markets are struggling, as Goldman Sachs suggested it might.