The 10-year Treasury yield touched 4.80% on Tuesday, its highest level since January 2025. The 30-year sits at 5.28%, close to levels last seen in 2007.
Every framework that has dominated market commentary in recent weeks says equities should be buckling under that.
The S&P 500 – tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY) – is up roughly 11% for the year and trades at 19.6 times forward earnings, which is cheaper than it was on June 30.
Something in that chain of reasoning is broken.
The reason is hiding in a place that gets less attention than bonds: corporate earnings.
#spdr
Every framework that has dominated market commentary in recent weeks says equities should be buckling under that.
The S&P 500 – tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY) – is up roughly 11% for the year and trades at 19.6 times forward earnings, which is cheaper than it was on June 30.
Something in that chain of reasoning is broken.
The reason is hiding in a place that gets less attention than bonds: corporate earnings.
#spdr
20 days ago
