Drew Pettit, Chief Investment Strategist at Roundhill Investments, warns that rising US 10-year Treasury yields could negatively impact equities, particularly if they exceed 5.5%, while the ongoing US-Iran conflict adds further uncertainty to market conditions.

US · 2026-09-11

1. Step 1 · The triggerUS 10-year Treasury yields rise, lifting the risk-free rate and discount rate for all US assets.
2. Step 2 · Knock-onHigher discount rates compress equity valuations and raise the cost of new and variable-rate debt for US SMEs.
3. Step 3 · Knock-onGeopolitical uncertainty from the US-Iran conflict further raises risk premia, tightening financial conditions and reducing risk appetite among lenders and investors.
4. Step 4 · Reaches youUS SMEs face higher borrowing costs and reduced access to capital, impacting investment and operational flexibility.

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: CNBC TV18 (Markets)

This is automated analysis for information only. It is not investment advice, not a recommendation, and not a solicitation to buy or sell any security. Branch² is not authorised or regulated. Do your own research.