Rising bond yields can be positive for stocks if two criteria are met. On the recent selloff, we take a “buy the dip” mentality, esp. for tech mega-caps.
Big Tech’s blockbuster earnings results, Trump’s intention to ban TikTok from the US and 85% of S&P 500 companies beating 2Q earnings estimates caught our attention this week.
46% of S&P 500’s market cap will report 2Q results next week. Narrow market breadth and fairly expensive valuations imply that some profit-taking could be due, should management guidance proves underwhelming.