Treasury Yields Jump, Stocks Sink, But the Key Factor Affects the Market is…
In recent years, Tech-stocks have become the key sector to drive the rise of U.S. stocks, but since 2022, due to the strong market expectations for the Fed to raise interest rates, the Benchmark U.S. Treasury yields jumped which has slammed the tech-stocks. See the chart below,The Two-year Treasury yields rose above 1% for the first time since February 2020, while 10-year Treasury notes climbed to 1.874%, a yield last seen that high in early January 2020. U.S. bond yields rose rapidly, and U.S. stocks weakened collectively.However, under the expectation of strong interest rate hikes, the decline in US stocks may belong to a panic-style decline, which is normal market performance.In the future, U.S. bond yields are likely to rise. According to Bernanke's framework, the main factors affectin
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