RBC’s Calvasina Says 5% Yield Would Challenge US Stock Bulls

US stock bulls face a valuation headwind if benchmark Treasury yields reach 5%, a level RBC’s Lori Calvasina says typically दबresses price-to-earnings multiples. The piece highlights that higher long-term yields could cap equity upside even without a broader macro shock. This is a cautious market call rather than a direct catalyst, but it may pressure rate-sensitive and valuation-heavy parts of the market.

Analysis

US stock bulls face a valuation headwind if benchmark Treasury yields reach 5%, a level RBC’s Lori Calvasina says typically दबresses price-to-earnings multiples. The piece highlights that higher long-term yields could cap equity upside even without a broader macro shock. This is a cautious market call rather than a direct catalyst, but it may pressure rate-sensitive and valuation-heavy parts of the market.