US Stocks Defy Rising Yields as AI Boom Masks Broad Market Stress
US stock markets are maintaining record highs despite a 30% surge in 10-year Treasury yields, a dynamic that defies traditional financial theory. While the S&P 500 remains near its all-time high, this strength is driven almost entirely by large-cap technology and AI-related stocks. Meanwhile, broader market indicators show significant weakness, with small-cap, bank, and utility sectors falling sharply. Analysts attribute the resilience to strong corporate earnings and robust economic growth, but warn that the narrow rally creates vulnerability if bond yields continue to rise or AI investment momentum slows.
