Wire flash
JPMorgan's Peters: US Stocks Can Still Rise, but Higher Yields Test Earnings
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
Grace Peters, an analyst at JPMorgan, expressed a bullish outlook on US stocks, arguing that they can continue to rise even as rising Treasury bond yields place higher demands on corporate earnings growth. In a report published on September 24, Peters attributed the recent increase in bond yields to several factors: strong economic growth data, the supply of bonds entering the market to finance artificial intelligence infrastructure, and inflation concerns driven by oil prices rising above $100 per barrel. She stated that while fixed-income assets still have a role in portfolios, investors should be selective, and she prefers stocks, anticipating a broadening earnings 'super cycle.' Peters noted that the 10-year US Treasury yield has moved about 40 basis points this month, which she said has not yet reached the two-standard-deviation threshold that would truly disrupt the stock market, though the market has already largely priced in the move.
Source report
September 24 — Grace Peters of JPMorgan believes U.S. stocks can continue to rise, even as higher Treasury yields raise the bar for earnings growth.
Peters cited several factors driving bond yields higher:
- Strong economic growth data
- Bond supply entering the market to finance artificial intelligence infrastructure
- Inflation concerns triggered by oil prices rising above $100 per barrel
She noted that fixed-income assets still have a place in investment portfolios, but selectivity is required. In contrast, Peters expressed a preference for equities, as she anticipates a broadening earnings "super cycle" ahead.
According to Peters, the 10-year U.S. Treasury yield has moved by approximately 40 basis points this month. "That's not yet a two-standard-deviation move, which would be the kind of shift that could truly disrupt the stock market. But equities are clearly reacting to it, and I think the market has already priced in a fair amount of this," she said.
Source
财联社Eastern
Part of this Story
US 10-Year Yield Breaks 5% for First Time Since 2007, Testing Stocks