Bond Yield Spike Puts Equity Markets at Risk, Investors Caution
The post Bond Yield Spike Puts Equity Markets at Risk, Investors Caution appeared on BitcoinEthereumNews.com. TLDR: The 30-year Treasury bond surpassed 5%, raising borrowing costs and pressuring stretched equity valuations across U.S. markets. The S&P 500 trades at 21.3x forward earnings, well above its 16x long-term average, leaving stocks exposed to a yield-driven selloff. First-quarter corporate profits rose nearly 28% year-over-year, with AI infrastructure spending emerging as a key growth driver. A prolonged Strait of Hormuz closure could unleash a new inflation regime that equity markets have not yet priced in fully. Bond yield spike concerns are growing among investors as U.S. stock markets appear unprepared for rising inflation risks. Despite strong first-quarter earnings and AI-driven productivity gains, geopolitical tensions tied to the Iran conflict are pushing energy prices higher. The 30-year Treasury bond crossed 5%, while the 10-year benchmark topped 4.5% last week. Anal