Growth vs. crisis: Markets weigh a higher-rate reality

Markets are currently interpreting higher yields as a sign of economic resilience, not an impending debt crisis. Key indicators like a firm dollar, contained inflation expectations, and tight credit spreads suggest the U.S. economy can handle elevated borrowing costs. The more pressing question is whether growth remains strong or begins to slow.

While strong growth favors cyclical sectors, slowing growth may push leadership back to quality and mega-cap growth stocks. The article implies that markets have adjusted to higher rates, rather than succumbing to crisis. Investors should monitor upcoming inflation data and regional economic reports for further clues.