The Stock Market Has a Real Problem—a Real Yield Problem

https://www.marketwatch.com/articles/stock-market-treasury-yields-2ff9828

WOC Street Summary:

1. Yields on the 10-year U.S. Treasury note have risen to 4.25%, the highest since 2007, providing a competitive alternative to stocks.

2. The rise in yields is driven by factors such as U.S. Treasury issuance, the Bank of Japan's policy, and strong economic data.

3. Strong economic growth and the potential for higher inflation may prompt the Federal Reserve to raise interest rates further.

4. Rising bond yields will hurt stock valuations, while a slowdown in the U.S. or China could also lead to a decline in the S&P 500.

5. Fed Chairman Jerome Powell's upcoming speech at Jackson Hole will likely have a significant impact on yields and stock prices.

Looking down next week?