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ANALYSIS - Rising Treasury Yields Test U.S. Stocks on Rich Valuations

The rise in Treasury yields may be the latest test of the U.S. stock rally, which has made them increasingly expensive and taken them to record highs. Expectations that the Fed will cut interest rates this year helped the S&P 500 to post a 10% gain in the first quarter, although the rise in Treasury yields has accelerated in recent weeks. So far, a resurgent economy, strong corporate earnings, and enthusiasm for artificial intelligence have helped the stock market largely escape this year's rise in yields.
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