JPMorgan warns surging bond yields threaten small-cap stocks

JPMorgan warns that rising 30-year bond yields pose a growing risk to small- and mid-cap equities, driven by deteriorating government finances. The bank notes around 60% of global GDP now comes from countries with debt exceeding 100% of GDP, and that only 9% of U.S. small- and mid-cap stocks offer dividend yields above 30-year Treasuries, down from 19% in early 2024 and a 24-year low.

Detected & updated continuously · Source: Nebula