Wall Street’s Stock Rally Holds As Yields Rise Toward 4.8%

According to CNBC, Wall Street’s summer rally has held up as the S&P 500 stayed within its May-July range, while investors remained heavily positioned in stocks and the 10-year Treasury yield moved toward 4.8%. The piece said measures from Goldman Sachs, State Street, the National Association of Active Investment Managers and Bank of America show asset allocators are heavily invested in equities, and Leuthold Group’s Courage/Fear Ratio has climbed to around an 18-year high. It also said Barclays strategist Venu Krishna noted retail participation has eased in recent weeks, suggesting the latest wave of fear of missing out has been driven mainly by institutional investors. The article said concerns about weaker U.S. economic data were eased by a strong payroll report, while AI-related capital spending remained a major theme through earnings season, with companies including Dell and Broadcom raising capex projections and guidance. It added that Nvidia has outpaced the broader semiconductor group by 35 percentage points since June 30, software has recovered 70% of its prior sell-off, and the iShares Nasdaq Top 30 Stocks ETF remains almost 5% below its peak from three months ago.