Stocks Face Volatility as 10-Year Yield Tops 5.33% and AI Valuations Stretch
Updated
Updated · Yahoo Finance · Oct 11
Stocks Face Volatility as 10-Year Yield Tops 5.33% and AI Valuations Stretch
1 articles · Updated · Yahoo Finance · Oct 11
Summary
More volatile trading days are likely in coming weeks, with stock prices increasingly at odds with higher oil, inflation pressure and rising borrowing costs.
The 10-year Treasury yield has held above 5% and hit 5.33% on Thursday, a level Sozzi argues stocks can no longer ignore because it raises capital and debt-servicing costs.
Oil above $100 a barrel is already feeding into earnings, with PepsiCo and Delta highlighting inflation strains on consumers and operating costs.
CrowdStrike trades at 43.5 times forward sales and 209 times forward earnings, which Sozzi says makes AI-linked stock enthusiasm look unsustainable against the macro backdrop.
Kenneth Rogoff said he had not worried about a US debt crisis until recently, adding to warnings that markets could face a turbulent end to the year.