The Looming Threat of Rising Rates: A Recession Replay

Yields on 10-year Treasury notes have surged above 4.3%, reaching a 15-year high. This rise in interest rates poses a threat to the recent stock market rally, as it creates increased competition for investors’ money. With stock valuations already high and interest rates continuing to climb, stock prices may face further declines. In addition to the impact on stock prices, the surge in Treasury yields also raises concerns about the long-term economic growth and the possibility of a recession.