Bond Yields Near 5%, Interest Rates Loom Large for Stock Market Volatility

Investors are bracing for increased market volatility as interest rates rise and bond yields approach 5%.

A senior portfolio manager at Invesco, John Burrello, warns that higher corporate financing costs could undermine the sustainability of AI-related investments and reshape market valuations of growth stocks.

Bond-market dynamics and interest-rate trajectories remain key risks poised to drive equity-market volatility going forward, according to Burrello.

The Federal Reserve's interest-rate decision this Wednesday will be closely watched as inflationary pressures persist and economic growth remains resilient.