Analysis-Rising Treasury yields pose a test for richly valued US stocks

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 63 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 63%

Business News News

Business Business Latest News,Business Business Headlines

Rising Treasury yields could provide the latest test for a rally that has made U.S. stocks increasingly expensive while taking them to fresh record highs...

NEW YORK - Rising Treasury yields could provide the latest test for a rally that has made U.S. stocks increasingly expensive while taking them to fresh record highs.

"The fact that are breaking above a previous ceiling here is giving pause," said Chuck Carlson, chief executive officer at Horizon Investment Services. "The trend of these rates is disconcerting because you have this continued series of higher highs here that is being perpetuated today." "Bonds offer some real competition," said Ed Clissold, chief U.S. market strategist at Ned Davis Research. "So if we were to see the 10-year Treasury yield spike back towards 5% like it did last fall, stocks would probably reflect that and equity valuations would need to come down."

Stocks' reaction to rising yields could depend on whether investors continue to believe the underlying economy remains strong and inflation is continuing to cool. "Stocks can weather a lot if the earnings are there," said Carlson of Horizon Investment Services. "But if earnings don't continue to beat expectations and you've got rates now going to four-month highs, that is going to be a problem for the market." -- Donald Trump has sued two co-founders of his newly public Trump Media & Technology Group Corp., claiming they set the company up improperly and shouldn’t get any stock in it.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in BUSİNESS
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks end day lower, 10-year Treasury yield moves higherThe major stock market averages (^DJI, ^IXIC, ^GSPC) ended Tuesday's session lower, setting the tone for a gloomy start to the second quarter. Yahoo...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Analysis-In India's sizzling stock market, consumer stocks rise 18% but are laggardsExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »

Analysis-Steady Fed outlook boosts stock market's hopes for coveted 'soft landing'Explore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »