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US Treasury & Euro bond yields rises while US stock market is down today – here's what investors need to know
Global Desk | February 4, 2026 7:57 AM CST

Synopsis

Rising US and European bond yields, with the US 10-year Treasury hitting a multi-month high, pressured growth stocks and led to a Nasdaq decline. Company-specific disappointments from Gartner and PayPal further weighed on the market. Euro zone yields also climbed, influenced by US Treasuries and speculation surrounding potential Federal Reserve leadership changes.

US Treasury & Euro bond yields rises

Bond markets set the tone on Tuesday, with rising yields in the US and Europe rippling through equities and shaping investor sentiment.

US 10-Year Treasury Yield Hits Highest Level Since August

In the US, Treasury yields moved higher, with the 10-year note reaching around 4.29%, its highest level since August, as per a report. The climb in yields weighed on growth stocks, as higher bond rates reduce the present value of future earnings, as per a Finimize report.

Nasdaq Crashed Today as Tech Stocks Slides

Technology shares led losses as a result, dragging the Nasdaq lower, while investors rotated toward steadier, value-tilted parts of the market that are seen as less sensitive to rising yields.


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Gartner and PayPal Drops Add to Market Pressure

The pressure from bonds was intensified by company-specific disappointments. Shares of Gartner fell sharply after the company reported weak adjusted earnings and issued a downbeat outlook for 2026. PayPal also slid after its results and revenue guidance missed expectations.

US Consumer Confidence Improves but Stays Below 50

Economic data offered a mixed backdrop. US consumer confidence improved slightly to 48.8 from 47.2, but remained below the 50 mark for a sixth consecutive month, as per the Finimize report. The reading suggested households are still cautious, an important signal for bond and equity investors alike, given the central role of consumer spending in the US economy.

Euro Zone Bond Yields Rise in Step With US Treasuries

Across the Atlantic, government bond yields in the euro zone also moved higher, taking cues from US Treasuries. Markets weighed the potential implications of Kevin Warsh’s possible appointment as Federal Reserve chair. Warsh has argued for lowering interest rates to boost productivity and for shrinking the Fed’s balance sheet, views that analysts say could result in a steeper yield curve.

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Germany’s 10-Year Bond Yield Climbs to 2.89%

Germany’s 10-year government bond yield, the euro area benchmark, rose by 2.6 basis points to 2.89%, as per a Devdiscourse report. Christoph Rieger of Commerzbank pointed out that the bond market reaction to Warsh’s potential nomination was relatively subdued, but expectations are building for a steeper US Treasury curve and wider long-end swap spreads, as per the Devdiscourse report.

Euro Zone Credit Tightens Amid Economic Uncertainty

Other developments in the euro zone reinforced a cautious tone in bond markets. Banks reported tighter access to corporate credit amid economic uncertainty, while France’s consumer prices increased less than expected in January.

FAQs

Why are bond markets in focus right now?
Because rising yields in the US and Europe are influencing stocks and investor sentiment.

What’s happening with euro zone bond yields?

They rose alongside US Treasuries, led by gains in German bonds.


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