What history says about longer

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-16 • Permanent link

Rising tensions in the global economy have sparked a frenzy of selling activity across financial markets, with stocks plummeting in response to President Trump's decision to bar some South African athletes from competing in the upcoming Olympics. The Dow Jones Industrial Average experienced its largest single-day point drop in over a year, with the S&P 500 index falling over 2% and the Nasdaq Composite shedding over 1.5%. Investors scrambled to respond to the news, with trading volumes reaching record highs as they sought to hedge against potential losses.

Fear of a broader trade war has gripped the global economy, with investors growing increasingly concerned about the potential for a prolonged conflict between the US and South Africa. The bar on South African athletes has sparked widespread criticism from South Africa's president, who has warned that the move could have serious consequences for the country's economy. As a result, investors are bracing themselves for a potentially volatile period ahead.

Since the 1970s, the Federal Reserve has raised interest rates in an effort to slow down the rapid rise in longer-term yields, but history shows that this approach has rarely been successful. The Fed's efforts to tighten monetary policy have often been met with a surge in yields, as investors seek out riskier assets to compensate for lower returns. In recent years, the Fed has raised interest rates four times, but yields have continued to rise, leading some experts to question the effectiveness of this approach.

As the global economy continues to navigate the challenges posed by the bar on South African athletes, investors will be watching closely for any further developments. The risk of a prolonged trade war remains high, and investors will be bracing themselves for a potentially volatile period ahead. With the US and South Africa set to meet for trade talks next month, investors will be watching for any signs of progress or further escalation.