Today’s Chart of the Day was shared by Ryan Detrick (@RyanDetrick). The 10-year US Treasury yield has risen 5 out of the 7 trading days so far this year. There seems to be a belief that rising yields are generally bad for Stocks, but the data suggests otherwise. The table shows the S&P 500's returns during periods in which the 10-year yield gained more than 100 basis points. As you can see, the S&P 500 tends to rise along with yields more often than not. To be fair, rising yields will likely impact which areas of the market outperform. But overall, the S&P 500 tends to do just fine in an environment where the 10-year yield is rising.
Chart of the Day - Tuesday, January 11th, 2022
January 11, 2022
