Recently, many bloggers have been discussing the relationship between US10Y and US02Y yields and the stock market performance; then I reviewed the situation and found that since 2023, the US10Y yield has been generally positively correlated with the S&P 500—when yields go up, the stock market also rises; when yields fall, the stock market declines. So, has the logic changed now? When yields rise, should the stock market fall?
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Recently, many bloggers have been discussing the relationship between US10Y and US02Y yields and the stock market performance; then I reviewed the situation and found that since 2023, the US10Y yield has been generally positively correlated with the S&P 500—when yields go up, the stock market also rises; when yields fall, the stock market declines. So, has the logic changed now? When yields rise, should the stock market fall?