High Treasury yields, a contributor to the recent pullback in stocks

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With the path of least resistance for stocks seemingly lower for now, key to watch will be a stabilization in interest rate volatility and clarity on

seemingly lower for now, key to watch will be a stabilization in interest rate volatility and clarity on the path of monetary policy, economists at Charles Schwab report.The upside breakout in Treasury yields has weighed on equity multiples, which expanded since last October without the benefit of earnings growth. The pressure has been more acute on the more richly valued mega-cap tech and tech-oriented stocks. Some reversal is likely needed to establish a better footing for stocks.

Better-than-expected recent economic activity, coupled with sticky inflation, is likely to keep uncertainty regarding Federal Reserve policy elevated. Fed Chair Jerome Powell has his much-anticipated speech at the Fed's annual confab in Jackson Hole later this week. It's possible he could try to establish some calm in the Treasury market.Information on these pages contains forward-looking statements that involve risks and uncertainties.

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