From CNBC: 2024-04-30 14:30:59

The bond market’s volatility has equity investors on edge as the 10-year Treasury yield hit 4.67%. Goldman Sachs warns that stocks may suffer when yields reach 5%. The market is now pricing in a 75% chance of just one rate cut by the Federal Reserve, impacting investor sentiment.

Goldman Sachs believes investors are currently in the “optimism phase” of the cycle, potentially leading to higher valuations. Rising yields signal danger for equities, prompting investors to consider risk-free alternatives like Treasury bills. Warren Buffett emphasizes the impact of interest rates on investment values, urging caution in a volatile market.

Read more: Where the 10-year yield is a ‘clear problem’ for stocks, Goldman says