Can stocks stay resilient with higher Treasury yields?

The key takeaway is that resilient economic growth, not inflation, is driving higher Treasury yields. This is pressuring lower-quality credit and narrowing stock market leadership.

Near-5% Treasury yields *can* coexist with a healthy stock market, provided earnings and nominal growth remain strong. This is the central thesis the author is testing.

We need to watch corporate earnings reports closely. If they hold up, stocks may continue to perform despite higher borrowing costs. However, a significant slowdown would challenge this thesis, likely leading to broader market weakness.