Shares of banks and other financial institutions have stumbled amidst concerns that the current global market volatility will persist. This downward trend in stocks comes as the latest economic and inflation data has sparked predictions of interest-rate hikes by the Federal Reserve.

The 10-year Treasury yield is currently at its highest level since 2006. In August alone, the broad S&P 500 has experienced a 5% decline, while the Nasdaq Composite has seen a drop of more than 7%.

Experts believe that both yields and stocks are at a crucial turning point. According to strategists from brokerage Bank of America Global Research, Treasury yields could potentially experience further growth, and any subsequent increases would be seen as a more negative development for equity markets.

A notable difference between credit markets and equity markets lies in their exposure to the impact of China's economic and financial struggles. Strategists from brokerage Goldman Sachs Group suggest that credit markets have been more stable due to their lower vulnerability to the fallout from these challenges.

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