Providence: Investors are warning that lofty US stock markets have not yet priced in the risk of rocketing inflation and are vulnerable to a sharp spike in bond yields. Equity markets have been propelled by robust first-quarter earnings and expectations of boosts from artificial intelligence, overshadowing the risk of high energy prices and the lack of a conclusion to the war with Iran.
But a spike in bond market yields over the past week-which took the 30-year treasury bond above 5% and benchmark 10-year bonds above 4.5%-could change the picture for investors. That caused stock market caution on Friday.
