A valuation case that has fueled a near-tripling in the Nasdaq 100 Index is coming under increasing pressure, with surging interest rates threatening to dent equities’ there-is-no-alternative argument.
While the stock-bond valuation picture still leans toward shares from a longer-term historical lens, it is currently being clouded by the biggest weekly run-up in 10-year Treasury yields in a year. Their surge has shrunk the advantage of the tech-heavy index’s earnings yield relative to the benchmark rate to the lowest level in over three years.
