Soaring bond yields and surging oil prices are triggering memories of the pre-crash market atmosphere among numerous seasoned Wall Street figures.

However, in their view, this sense of déjà vu is not yet a sufficient reason to abandon the market. For equity investors, the present situation involves a confluence of multiple headwinds. The yield on the 10-year US Treasury is approaching 5%, with long-term bond yields near their highest levels since 2007. Concurrently, with West Texas Intermediate (WTI) crude hovering near $100 per barrel and the ongoing conflict in Iran driving energy costs higher, traders are increasingly betting on a Federal Reserve rate hike at this week’s meeting to combat persistent inflation. Additionally, September is historically a weak month for stock performance. Factoring in all of these elements, the current climate might appear to be an opportune moment to sell equities.

This could explain why the S&P 500 has remained largely stagnant since the start of June. Prior to this, the index had gained 11% in the first five months of 2026 and had posted double-digit percentage increases for three consecutive years. Of course, even with this backdrop, stocks managed to rally on Friday as inflation data seemingly raised the odds of a near-term Fed rate hike, prompting investors to buy the dip after four straight sessions of declines. According to Drew Pettit, Chief Investment Strategist at Roundhill Investments, the stock market is behaving like a duck—appearing calm on the surface while paddling furiously beneath the water.

Drawing parallels between the current market and the late 1990s is not without merit. Strategists at Bank of America and CIBC Capital Markets pointed out last week that technology stocks had continued to climb for years amid a Fed tightening cycle and rising Treasury yields before the eventual crash that followed the bursting of the dot-com bubble. This suggests that the present market could also continue its upward trajectory. Michael Rosen, Chief Investment Officer at Angeles Investment Advisors, remarked, the greater risk lies in missing the final leg of a bull market, as that phase often delivers the most substantial returns to investors. He clarified that he is not declaring the bull market over, but if that day arrives, attempting to re-enter after missing the rally would be a nearly impossible feat.