U.S.-Iran Truce Expires, Stocks Wobble, and Borrowing Costs Jump

S&P 500 futures slipped early Monday as a temporary U.S.-Iran ceasefire lapsed without a new deal. At the same time, Treasury yields spiked, signaling fresh investor worry over inflation and global instability. The truce, which had paused direct military exchanges for several days, ended overnight. No formal extension was announced, and both sides have resumed their previous rhetoric. This uncertainty is pushing money out of stocks and into safer assets, though not fast enough to stop bond yields from climbing. The yield on the 10-year Treasury note rose sharply in pre-market trading. Higher yields mean the government pays more to borrow, which typically pressures stock valuations, especially for growth companies. Futures for the S&P 500 fell about 0.4% in response. Traders are now watching for any new diplomatic move. A full conflict would likely send oil prices higher, adding to inflation pressures that central banks are already fighting. For now, the market is bracing for a volatile session, with no clear resolution in sight.