Barclays said rising bond yields are making equities less attractive on a relative basis, with the extra return stocks offer over bonds now near multi-decade lows. The bank warned that the U.S. stock market is approaching a "tipping point" even as corporate earnings remain resilient and AI-led growth continues to offer support. Barclays also pointed to crude oil moving above $100 a barrel and a renewed tightening stance from major central banks as factors adding to market risk. While the bank is keeping its overweight rating on equities for now, it expects volatility to persist ahead of the third-quarter earnings season. Investors, it said, will be focused on how much higher bond yields the stock market can absorb.
Barclays warned on Sept. 25 that steadily rising bond yields are weakening the relative appeal of equities, with the additional return stocks offer over bonds now close to multi-decade lows. The bank said the U.S. stock market is nearing a "tipping point."
Barclays keeps overweight call but sees more volatility ahead
Barclays said corporate earnings have remained resilient, and AI-driven growth is still providing support. At the same time, crude oil rising above $100 a barrel and renewed monetary tightening by major central banks are adding to market risk.
The bank is still maintaining an overweight rating on equities, but it expects volatility to continue ahead of the third-quarter earnings season. Investors will be watching how high bond yields can rise before the stock market can no longer absorb them.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
