Skip to main content

We think higher yields will slow the stock market’s rally

The recent surge in the S&P 500, to within striking distance of our long-standing end-2021 forecast of 4,200, has coincided with long-dated Treasury yields stabilising after their sharp rise earlier this year. Nonetheless, we’re sticking, for now, to our forecast for the stock market index, because we anticipate that the sell-off in the bond market will resume in due course and that this will slow down stock market gains.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access