Advertisement SKIP ADVERTISEMENT You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load. Strategies Stocks Are Exuberant. Bonds Are Subdued. Why the Divergence? Stock investors are betting that companies will make enormous profits, despite the war. But investors in bonds, including U.S. Treasuries, have other concerns. People attending a pro-government demonstration in Tehran last month. The S&P 500 has hit new highs since the start of the war in Iran. Credit... Arash Khamooshi for The New York Times May 7, 2026, 11:47 a.m. ET The U.S. stock market has been splendid lately, while the bond market has wobbled. These two barometers of the global financial world have responded quite differently to the higher oil prices and increased economic risks induced by the war in Iran. After a rough stretch in March, the U.S.…