End of ultra-low interest rate tailwinds for US stocks and rising Treasury yields
VOO Vanguard S&P 500 ETF
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View chart & analysis → - 1US stocks benefited from powerful tailwinds of ultra-low interest rates from 2009 to 2022.
- 2The 10-year Treasury yield is 5.32% and the 30-year Treasury yield is 5.70%, approaching near 20-year highs.
- 3Revenue and profit growth driven by the artificial intelligence (AI) boom partially offsets inflation and Federal Reserve interest rate hike pressures.
So what's the key point?
The era of very low interest rates that pushed US stocks has ended. Profit growth from the artificial intelligence craze is providing some protection against interest rate hike pressures.
Source The Motley Fool +1 · View original ↗
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