Welcome to Markets Desk, your midday read on what's moving markets and the broader economy.
Long-term Treasury yields are sitting at multidecade highs, and that matters. The traditional safety net that bonds provided as a hedge against equity drawdowns is eroding fast. When yields rise this sharply, bond prices fall, meaning the classic portfolio buffer is working against investors rather than for them.
Turning to the open, Wall Street is set to begin the session moderately higher after signals from the White House suggesting military action against Iran is unlikely before the midterm elections in November. Markets are reading that as a reduction in near-term geopolitical risk, giving equities room to breathe as traders recalibrate their exposure.
And in a story worth watching for consumer discretionary names, Camping World is closing additional store locations as the pandemic-era recreational vehicle boom continues to unwind. Travel habits have normalized, demand for RVs has cooled considerably from its peak, and the company is now rightsizing its footprint to match a market that looks very different than it did just three years ago.
That's the tape. Markets Desk, signing off the floor.
