Rising Yields Put US Stock Rally in Jeopardy as Powell Maintains Rate Stance

US Stock Rally

The recent rise in US Treasury yields, coupled with investors’ growing belief in the Federal Reserve’s stance on interest rates, could potentially impact the early-year stock market rally.

The yield on the benchmark 10-year Treasury note has risen nearly 30 basis points to 3.69% and the two-year note has gained almost 40 basis points to 4.47%. The equity risk premium, which measures the extra return for holding stocks over government bonds, has become less favorable, according to Keith Lerner from Truist Advisory Services.

However, Brian Jacobsen from Allspring Global Investments believes that yields will not harm equity markets unless the 10-year yield surpasses 4%, a level it has not exceeded since November. Despite this, Jacobsen remains optimistic about growth stocks which have had a strong recovery in 2023.

Top Trending Stocks

AVG Analyst Rating STA Analysis
StockTargetAdvisor
Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Strong Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Strong Buy
StockTargetAdvisor
Bullish
StockTargetAdvisor
Strong Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Strong Buy
StockTargetAdvisor
Slightly Bullish
StockTargetAdvisor
Strong Buy
StockTargetAdvisor
Slightly Bullish
N/A N/A
N/A N/A
StockTargetAdvisor
Buy
StockTargetAdvisor
Slightly Bullish
Ad
Ad

Leave a Reply

Your email address will not be published. Required fields are marked *