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BusinessBusiness Insider2h ago

Why stocks have held up as yields surge to 24-year highs

Bond yields are the highest in 24 years, but stocks aren't far from all-time highs. Here's what's going on under the surface of the market.

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AI SUMMARY

# Stock Market Resilience Despite Surging Bond Yields Stock markets have maintained strength near all-time highs despite 10-year Treasury yields reaching 24-year peaks, driven by strong corporate earnings growth and expectations that the Federal Reserve may pause rate hikes, which supports valuations for profitable companies. The divergence between elevated bond yields and resilient equities suggests investors are differentiating between sectors, with growth and mega-cap technology stocks remaining attractive relative to traditional value plays despite higher borrowing costs.

Content sourced from Business Insider. Not financial advice.