A 10-Year Yield Slightly Over 3% Would Not Be Disastrous for the U.S. Stock Market

Concerns about accelerating inflation and rising bond yields recently triggered a more than 10% correction on several major stock markets. Some worry that a U.S. 10-year yield above 3% would mean the end of the S&P 500 bull market. These concerns seem exaggerated. Bond yields would have to post much steeper increases to convince investors to turn their back to the stock markets, especially against the backdrop of excellent prospects for earnings growth