Market Outlook: Rising U.S. Treasury yields test stock gains

BNN Bloomberg spoke with Christine Tan, portfolio manager at SLGI Management, about why U.S. Treasury yields are pressuring stock gains as investors weigh another Federal Reserve rate increase. Tan said resilient economic data, persistent inflation and a heavy supply of new bonds are helping lift long-term yields, keeping markets focused on the bond backdrop into the fourth quarter. She noted higher yields could weigh on U.S. mortgage lending and other interest-rate-sensitive parts of the economy. Tan also highlighted a potential knock-on effect for sectors that depend on big AI-company investment, warning that any slowdown in those firms’ spending could become a headwind. The manager is watching for firm investment commitments following the Canada Investment Summit, and she expects clues in U.S. bank earnings on trading revenue, deal activity and pressure on lower-income consumers.