Fed rate hikes put pressure on S&P 500 amid rising Treasury yields

The S&P 500 is under pressure as the Federal Reserve continues raising interest rates, pushing Treasury yields higher. This environment is raising concerns among investors about stock valuations and corporate profit sustainability.

Rising interest rates typically reduce the attractiveness of equities relative to bonds, while also increasing borrowing costs for companies. These dynamics are creating conditions that could trigger a market correction in the near term.