Analysis-Rising Treasury yields pose a test for richly valued US stocks

Rising Treasury yields could provide the latest test for a rally that has made U.S. stocks increasingly expensive while taking them to fresh record highs. Expectations that the Federal Reserve will cut interest rates this year helped the S&P 500 notch a 10% gain in the first quarter, even as Treasury yields have accelerated their advance in recent weeks. So far, a resilient economy, robust corporate earnings and excitement over artificial intelligence have helped stocks largely shrug off rising yields this year.