Rising 10-year Treasury rates create opportunities for finance stocks like JPMorgan Chase, Morgan Stanley, and Prudential Financial. The Fed’s third rate cut this year hasn’t affected 10-year Treasury yields, leading to a rethinking of financial investment strategies. Investors anticipate a steeper yield curve benefiting banks and expect higher long-term rates to drive earnings growth.

JPMorgan Chase & Co. stands out among big banks with a strong balance sheet and consistent outperformance. The stock is up 31.5% YTD, with a reliable dividend that has increased for 15 consecutive years. Valuation is a concern at 15.6x earnings, but potential entry points exist at $300 or a bullish move above $322.25.

Morgan Stanley also outperforms the market, up approximately 44% YTD. The company’s wealth and investment management franchise, as well as potential in IPOs and M&A, are driving high-margin revenue. Like JPM stock, MS stock is trading at a slight premium to historical averages, but remains a logical choice in the financial sector.

Prudential Financial Inc. offers income, stability, and earnings growth potential. The stock is down 0.71% YTD but up over 10% in the past month. Analysts anticipate higher interest rates expanding investment income and supporting margin expansion. With a 4.59% dividend yield and trading at a discount to historical averages, PRU stock presents an attractive opportunity.

Read more at Yahoo Finance: 3 Finance Stocks to Buy on Rising 10-Year Treasury Rates