CNBC Daily Open: Stocks are under pressure from Treasury yields

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Rising U.S. Treasury yields are straining stocks. And with rates possibly going higher if inflation resurges, yields could climb further still.

were released. The Fed's warning that sustained inflation could lead to more rate hikes — and a higher chance of an engineered recession — probably triggered a sell-off in risky assets like cryptocurrency, said Sylvia Jablonski, chief investment officer at Defiance ETFs.Evercore ISI's Mark Mahaney is famous for his analysis of technology stocks. So when he has a new top pick, investors listen.

is his new favorite small- and mid-capitalization internet firm, and has a possible upside of nearly 72% over the next 12 months, according to Mahaney.Rising U.S. Treasury yields are straining stocks. Minutes of the Federal Reserve's July meeting triggered the 10-year yield to rise more than 2 basis points to hit its highest level in almost a year. But at 4.282%, it's still lower than the benchmark interest rate of 5.25% to 5.5%.for the year, which would take rates to a range of 5.

Those bets are slowly unwinding. There's a 38% chance that the Fed will increase rates by 25 basis points at its November meeting, according to theAnd with rates possibly going higher than that if inflation resurges — as the Fed warned in its minutes — yields could climb further still.

 

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