May 13, 2024
Finance

The stock market has a ‘systemic problem’

Stocks are facing a familiar problem. Even as earnings for the first quarter come in better than expected, the market has struggled to climb higher consistently as rising Treasury yields weigh on sentiment for equities, reminding investors of the period in 2023 when higher yields sent stocks crashing. “Higher rates are now a systemic problem

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Investors

The rate trade is back in focus for stock investors

Wall Street is worried that the rate trade could drag down stocks. The 10-year Treasury yield (^TNX) has risen roughly 25 basis points in the last 10 days alone. It’s now hovering around 4.32%, just shy of levels Morgan Stanley chief investment officer Mike Wilson recently noted could be a critical level for stock investors.

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