10-year yield rise challenges US stocks due to Federal Reserve's rate cut expectations.
Rising Treasury yields challenge US stocks, which have reached fresh record highs due to the Federal Reserve's rate cut expectations. With the 10-year yield at its highest in over four months, investors worry that elevated valuations make equities more vulnerable if rates continue climbing. Higher yields increase the appeal of "risk-free" Treasury bonds compared to equities, raising the cost of capital for companies and households.
April 03, 2024
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