US stocks were little changed Thursday, the S&P 500 dipped 0.02% to 7,704.13,…

US stocks were little changed Thursday, the S&P 500 dipped 0.02% to 7,704.13, the Dow fell 0.31% to 51,349.98, and the Nasdaq edged up 0.01% to 26,939.37, masking a bigger story underneath: a bond selloff sent the 10-year Treasury yield to its highest level since 2007 (above 5.1%) and the 30-year to its highest since 2004, as Fed officials turned hawkish. New York Fed President John Williams said another rate hike by year-end would be "reasonable," and traders now see roughly 69% odds of an October hike. Oil added pressure, with Brent crude topping $105 a barrel on Middle East tensions, though stocks pared losses after Reuters reported US and Iranian negotiators are exploring a phased deal to reopen the Strait of Hormuz. Separately, the Trump-Xi summit got underway in Washington, with Treasury Secretary Scott Bessent announcing a two-month extension of the US-China trade truce to January 10, shorter than some had hoped. Meta gained 4% after unveiling plans to monetize its popular Muse AI agent, while MGM Resorts tumbled 10% after an investor group withdrew its $18 billion buyout offer.

The PSEi fell for a fifth straight session Thursday, dropping 1.12% (65.12 points) to close at 5,730.02, its lowest finish since Nov. 14, 2025, a more-than-10-month low. Philstocks Financial attributed the decline to weaker Philippine economic growth forecasts (GDP grew just 2.3% in the second quarter) combined with surging US Treasury yields and elevated global oil prices, which also strengthened the US dollar against the peso. The local currency weakened further to around ₱62.73-62.75 per dollar. Mining and Oil was the day's worst-performing sector, tumbling 3.79%, followed by Industrial (-1.64%), Services (-1.52%), Financials (-1.33%), and Property (-1.15%); Holding Firms was the lone gainer, up 0.43%, led by Ayala Corp's 3.09% rise to ₱500. Turnover was moderate at around ₱4.6-5 billion, and foreign investors were net sellers of about ₱749 million.

The same bond-market selloff rattling Wall Street Thursday, the 10-year Treasury yield hit its highest level since 2007 on hawkish Fed comments, is compounding an already rough week for the Philippines. Rising US yields make it costlier for the Philippines to borrow and add pressure on the peso, which weakened further as the dollar strengthened; combined with weak second-quarter PH growth data (just 2.3%) and elevated global oil prices tied to Middle East tensions, that pushed the PSEi to a 10-month low. The hardest-hit PH sector was Mining and Oil, down 3.79%, since Philippine coal and power companies are directly exposed to the same volatile crude prices driving the Wall Street story; Financials and Property, both rate-sensitive, also fell more than 1%. One thing to watch: whether the Fed actually delivers the October rate hike traders are now pricing in, since that would likely mean further peso weakness and higher borrowing costs for the Philippines just as its own growth is already slowing.