{"id":607103,"date":"2026-07-27T21:20:11","date_gmt":"2026-07-27T21:20:11","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/607103\/"},"modified":"2026-07-27T21:20:11","modified_gmt":"2026-07-27T21:20:11","slug":"wharton-professor-jeremy-siegel-warns-rates-are-near-levels-that-could-derail-earnings-fueled-stock-gains","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/607103\/","title":{"rendered":"Wharton professor Jeremy Siegel warns rates are near levels that could derail earnings-fueled stock gains"},"content":{"rendered":"\n<ul class=\"yf-1jsc1up\">\n<li class=\"yf-1jsc1up\">\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Jeremy Siegel says interest rates are approaching worrying levels for stocks.  <\/p>\n<\/li>\n<li class=\"yf-1jsc1up\">\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The economist says the spike in bond yields threatens earnings-related stock strength.  <\/p>\n<\/li>\n<li class=\"yf-1jsc1up\">\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The 10-year Treasury yield recently hit its highest level since early 2025.  <\/p>\n<\/li>\n<\/ul>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><a href=\"https:\/\/www.businessinsider.com\/surprise-rate-hike-july-fed-meeting-kevin-warsh-neil-dutta-2026-7?utm_medium=referral&amp;utm_source=yahoocom&amp;utm_medium=syndication&amp;utm_source=yahoo\" data-ylk=\"slk:Interest%20rates;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Interest rates&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Interest rates<\/a> are inching closer to the danger zone for stocks, Jeremy Siegel warns.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The top economist and Wharton professor of finance said that in the <a href=\"https:\/\/markets.businessinsider.com\/bonds?utm_medium=referral&amp;utm_source=yahoocom&amp;utm_medium=syndication&amp;utm_source=yahoo\" data-ylk=\"slk:bond%20yields;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;bond yields&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">bond yields<\/a> are near levels that have historically posed challenges for equities. He pointed to the 10-year inflation-adjusted Treasury yield, which ticked up to 2.43% at the end of July, according to Fed data.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Siegel said he was looking in particular at the spread between the inflation-adjusted Treasury yield and the inflation-adjusted market yield, which he estimated to hover around 5%.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><a href=\"https:\/\/www.businessinsider.com\/personal-finance\/investing\/treasury-bonds?utm_medium=referral&amp;utm_source=yahoocom&amp;utm_medium=syndication&amp;utm_source=yahoo\" data-ylk=\"slk:Inflation-adjusted%20Treasury;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Inflation-adjusted Treasury&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Inflation-adjusted Treasury<\/a> yields remaining lower suggests stocks still have an edge over bonds on the basis of returns, but the appeal of equities could diminish if rates move much higher, he told CNBC.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">&#8220;Not yet a threat, but if we see those real yields continue to rise, there&#8217;s no question,&#8221; Siegel said. He added that yields also threaten a major driver of stock gains that investors are counting on.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">&#8220;If those interest rates go up, whatever earnings are, that might not be enough to offset,&#8221; he added of the potential for moves in the bond market to weigh on an earnings-fueled rally.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><a href=\"https:\/\/www.businessinsider.com\/oil-prices-bond-yields-stock-market-today-inflation-iran-war-2026-7?utm_medium=referral&amp;utm_source=yahoocom&amp;utm_medium=syndication&amp;utm_source=yahoo\" data-ylk=\"slk:Bond%20yields%20have%20surged;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Bond yields have surged&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Bond yields have surged<\/a> in recent months, a sign investors are becoming more jittery about the <a href=\"https:\/\/www.businessinsider.com\/investing-advice-inflation-protection-interest-rates-bonds-economy-wells-fargo-2026-7?utm_medium=referral&amp;utm_source=yahoocom&amp;utm_medium=syndication&amp;utm_source=yahoo\" data-ylk=\"slk:inflation%20outlook;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;inflation outlook&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">inflation outlook<\/a> and are pricing in higher rates from the Fed as the economy deals with pricing pressures spurred by the Iran war and higher oil prices.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The <a href=\"https:\/\/markets.businessinsider.com\/rates\/u-s--rates-10-years?utm_medium=referral&amp;utm_source=yahoocom&amp;utm_medium=syndication&amp;utm_source=yahoo\" data-ylk=\"slk:10-year%20US%20Treasury%20yield;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;10-year US Treasury yield&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">10-year US Treasury yield<\/a> ticked up to 4.7% last week, the highest since January 2025, as Brent broke back above $100 a barrel.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Investors also expect rates to tick higher from here. Markets are pricing in at least one or two more rate-hikes by year end, and are pricing in a 36% probability that <a href=\"https:\/\/businessinsider.com\/stock-market-outlook-this-week-fed-meeting-big-tech-earnings-2026-7?utm_medium=referral&amp;utm_source=yahoocom&amp;utm_medium=syndication&amp;utm_source=yahoo\" data-ylk=\"slk:the%20Fed%20could%20raise%20rates;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;the Fed could raise rates&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">the Fed could raise rates<\/a> at this week&#8217;s policy meeting, according to the CME FedWatch tool.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Other forecasters on Wall Street have flagged that interest rates look to be approaching levels that could create problems for stocks, with HSBC warning recently that long-end yields had &#8220;clearly breached the <a href=\"https:\/\/www.businessinsider.com\/bonds-30-year-treasury-yield-inflation-interest-rates-fed-2026-5?utm_medium=referral&amp;utm_source=yahoocom&amp;utm_medium=syndication&amp;utm_source=yahoo\" data-ylk=\"slk:Danger%20Zone.;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Danger Zone.&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Danger Zone.<\/a>&#8221;  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">If you enjoyed this story, be sure to follow <a href=\"https:\/\/profiles.yahoo.com\/brands\/business-insider\/\" data-ylk=\"slk:Business%20Insider;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Business Insider&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"nofollow noopener\">Business Insider<\/a> on Yahoo.  <\/p>\n","protected":false},"excerpt":{"rendered":"Jeremy Siegel says interest rates are approaching worrying levels for stocks. The economist says the spike in bond&hellip;\n","protected":false},"author":2,"featured_media":607104,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[1901,79,179,18,19,5389,17,73528,39892],"class_list":["post-607103","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-bond-yields","tag-business","tag-economy","tag-eire","tag-ie","tag-interest-rates","tag-ireland","tag-jeremy-siegel","tag-treasury"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116994036649153621","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/607103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=607103"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/607103\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/607104"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=607103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=607103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=607103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}