The Bond Market Will Keep Driving Stocks—At Least Until Earnings Season

If you want to know what's going on in the stock market any given day, the answer of late has overwhelmingly been: the bond market.

That was no different on Friday, where the Dow Jones Industrial Average fell 230 points, or 0.4%. The S&P 500 was down 0.2%. The Nasdaq Composite was down 0.1%.

All three major indexes were faring far better until bond yields and oil prices took a chunk out of stocks. David Donabedian, senior investment strategist at CIBC Private Wealth, tells Barron’s he expects bonds to be in the driver’s seat at least until earnings season kicks off in October.