Jay Powell ended his term as Fed chair, with Kevin Warsh expected to take over this Friday. Markets recovered after Friday's downturn, with bonds and stocks showing improvement. The key question is whether Warsh will shrink the Fed's balance sheet with the 30-year US yield above 5%. UBS Wealth Management views the recent bond market drop as noise rather than fundamental signal.

Market support from US earnings season is fading, with Nvidia's earnings being the last major event. The blocked Strait of Hormuz removes another pillar supporting stocks. UK gilts appear less exceptional when comparing yields to local swap rates rather than nominal yields alone, though political risks may already be embedded in short-term rate expectations.

Global yields have reset higher across major markets. While the UK faces challenges, investors should avoid getting "sucked into the UK vortex of doom" when a broader "global vortex of doom" presents itself. The old world of tech is dying as the new cannot yet be born, creating uncertainty across asset classes.