Yardeni Research Predicts Potential Stock Market Rally if PCE Inflation Abates
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#4f691011 ver:0.52

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 S&P 500 gained 10% in the first quarter due to expectations of interest rate cuts by the Federal Reserve. However, strong economic data is reducing expectations for rate cuts, and the 10-year Treasury yield hit 4.4%, its highest level in over four months. The surge in yields is sparked by stronger-than-expected retail sales data and geopolitical tensions .

Higher yields indicate rising borrowing costs, potentially dampening economic growth and cooling demand in the housing market. Investors face a changing landscape, with fixed-income securities becoming more attractive. Financial experts have varying expectations, with factors such...

#newstr #Stocks #PceInflation #FederalReserve #S&p500 #BondMarket 

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