Published on October 06, 2026

2026Q3 - Quarterly Market Rundown - Back to the Future

Despite stronger economic growth, equities lost momentum as investors grappled with surging interest rates, with the 10-year Treasury reaching its highest level since 2007 amid resilient growth, persistent inflation, and ongoing rate volatility.

Written by Dan Phillips, CFA

2026Q3 - Quarterly Market Rundown - Back to the Future

Equity markets struggled to hold on to their price momentum from the first half of the quarter, even as economic momentum accelerated in the back half. But it’s not growth investors are concerned about. It’s interest rates. The 10-year U.S. Treasury yield ended the quarter at 5.28% – it’s highest level since June 2007 and presenting unfamiliar territory for many investors (and completely unchartered territory for many others). We believe driving rates higher is a combination of strong growth, stubborn inflation and current interest rate volatility itself. We aren’t as convinced elevated government debt levels are the culprit.

Click to read: 2026Q3 - Quarterly Market Rundown - Back to the Future