"Unveiling the Real Problem Plaguing the Stock Market: Morning Brief"

The stock market is facing a "real" yield problem as investors become more focused on rising real yields, adjusted for inflation. The yield on 10-year TIPS (Treasury Inflation-Protected Securities) reached its highest level since March 2009, indicating market pricing of higher policy rates relative to inflation and a stronger economy. Economists are concerned about looming upside risks to inflation due to a strong labor market, rising wages, and continued consumer spending. Higher interest rates typically lead to lower stock prices, and investors are concerned about the impact on equities. The move in real yields suggests a longer-term shift away from low interest rates in the US economy.