Stocks stumble as bonds post worst monthly loss in years

Stocks faltered and bonds headed for their worst monthly loss in years as oil prices and bond yields rose, with investors bracing for an Australian interest rate hike and short-term borrowing costs at multi-year highs. The 10-year U.S. Treasury yield hit a 19-year high above 5.27%, up nearly 50 basis points since early September. The 2-year U.S. yield surged over 57 basis points this month to 5%, as traders expect three more Federal Reserve rate hikes by mid-2027. Rising yields pressure government, corporate, and household budgets. Only Nvidia's $150 billion share buyback program limited the rate-sensitive Nasdaq index's decline to 0.9% overnight, while most Asian markets fell. Japanese, South Korean, and Australian bond markets traded under pressure, and Brent futures held at $106.60 per barrel. The Australian dollar stayed at $0.7012 with a rate hike fully priced in, while the yen strengthened after Tokyo and Washington expressed shared concern over its weakness.