The stock market’s long rally with AI trade is at risk due to the 10-year US Treasury yield’s interference. The Nasdaq-100 Index could be in trouble if rates continue to rise. The market may not handle high rates well, potentially causing panic.

The 10-year U.S. Treasury Bond yield is breaking out of a multi-month trading range, with a target of 4.8%. This could lead to a panic-inducing situation for consumers, corporations, and the government, affecting the stock market negatively.

The Invesco Nasdaq QQQ ETF faces potential declines, as most market declines since 2008 have been significant. Charts indicate a short-term trend with a wilting Price Percentage Oscillator and turning moving averages, suggesting a possible sustained decline.

The daily view of QQQ is not yet showing signs of decline. This week is crucial for QQQ and the broader stock market, with potential implications for the holiday season and end of the year market performance.

The risk of a market plunge is increasing, with downward movement in QQQ and upward movement in the 10-year rate. Investors should pay attention to these early signs as they could lead to more significant market impacts.

Read more at Yahoo Finance: The QQQ Is at Risk of a Christmas Crash, So Pay Attention to Bond Yields Right Now