For decades, the S&P 500 has been the preferred benchmark for monitoring the performance of the U.S. stock market. But these days, it is behaving less like a barometer of broad market health and more like a funhouse mirror.
While investors worry a spike in global bond yields will trigger a selloff in U.S. equities, strategists at BofA Global Research say the real threat lies elsewhere.
In an era of higher interest rates, banks have reaped big profits due to consumers’ reluctance to move money out of low-interest checking accounts that offer convenience and ready access to money.
At this point, an interest-rate hike from the Federal Reserve on Wednesday is seen as a virtual certainty by most of Wall Street, although some believe a hold is still possible.
Investors are taking a more cautious tack as rising bond yields and and a calendar riddled with risks — from Federal Reserve meetings to the U.S. midterm elections — inspire many to adopt a more cautious position.
