Treasury Yields Reaching 5% Pose Threat to Stock Rally

Good morning. The S&P 500’s red-hot rally will be put to the test. Blue Origin prepares for its first rocket launch. And the Australian Open got off to a wet start. Listen to the day’s top stories.

The S&P 500’s rally is being put to the test as the prospect of 5% Treasury yields lure traders like a magnet. The policy-sensitive 10-year yield is the highest since October 2023 and rapidly approaching a level some fear may spark a stock market correction. The mood is gloomy in China as well, with the stock market off to its worst start since 2016 as investors grapple with policy uncertainty, US trade tensions and sluggish economic recovery.