yields

Why the spiking bond yields driving sharp losses in tech stocks are not a long-term threat to the market, according to one Wall Street chief strategist

iwano@_84 1 month ago

Getty Images / Bryan R. Smith


  • Rising interest rates have sparked a surge in stock-market volatility that’s seen tech shares take a sharp dive.
  • But investors should not fear rising interest rates, according to a recent client note from The Leuthold Group.
  • “Yields may be rising, but yield pressure is still extremely low because real growth is improving even faster,” said Jim Paulsen, the firm’s chief investment strategist.
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A spike in interest rates since the start of the year has accelerated a rotation out of high-growth technology stocks and into value stocks poised to benefit from a reopening of the economy.

The Nasdaq has fallen more than 10% over the past month as the Dow has soared to record highs, with a spike in the 10-year US Treasury yield acting as the main catalyst. It

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