Analysis-Investors hope strong US economy can insulate stocks from yield surge

As Treasury yields march higher, some investors are betting a resilient U.S. economy and moderating inflation can shield stocks from their deleterious effects this time around. The S&P 500 index plunged 19.4% in 2022 when yields soared as the Federal Reserve raised interest rates to head off a surge in inflation and wobbled again when yields spiked to 16-year highs last year – though stocks came screaming back once the move reversed. That relationship was evident again on Tuesday after hotter-than-expected consumer price data for January undercut the case for imminent Fed rate cuts and sent Treasury yields soaring.