Higher Bond Yields Haven't Broken The Stock Rally Yet. Wall Street Sees The 5% Benchmark As Big Test.

Higher Bond Yields Haven't Broken The Stock Rally Yet. Wall Street Sees The 5% Benchmark As Big Test.

Strong corporate profits have helped stocks absorb pressure from inflation, government borrowing and higher rates.

Are Surging Bond Yields a Threat to the Global Stock Rally?

In equity markets, the myth goes that the only way is up. That perception has gained traction as global stock prices have largely ignored the selloff in bond markets. Yields on long-dated government debt have surged to near two-decade highs as investors worry about whether inflation and fiscal deficits can be tamed, and as sovereign bonds compete with an AI-fueled corporate borrowing boom.

Stocks shrug off rising yields to rally in August (US10Y:)

August markets recap: long-dated bond yields hit multi-year highs as equities rose on strong data; inflation/fiscal risks and Fed signals in focus—read...