S&P 500 Climbs 1.2% Despite Rising Treasury Yields
The S&P 500 rose 1.2% for the week and came within 0.7% of a record high, even as the 10-year Treasury yield jumped. Gains were concentrated in large-cap growth and technology, while value, small caps, REITs, and commodities lagged. The author remains invested in equities but is raising cash as a correction hedge.
The S&P 500 finished the week up 1.2%, leaving it just 0.7% below its prior peak. That advance occurred while the 10-year Treasury yield rose sharply. Gains were not broad: large-cap growth and technology, including the Magnificent Seven, led, while value, small- and micro-cap shares, real estate investment trusts, and commodities trailed.
The author, a former Northern Trust equity trading desk head with three decades in institutional markets, remains long equities but is slowly increasing cash as protection against a possible correction. His rules-based model portfolio holds 15–20 names and scores them on quality, growth, momentum, value, and risk. He disclosed beneficial long positions in Nvidia, Broadcom, and Alphabet.
A narrow rally led by large-cap technology may matter most to investors whose portfolios are concentrated in those names, while owners of small-cap, value, REIT, and commodity exposure could feel left behind. If yields keep climbing, borrowing costs for households and businesses may stay elevated, potentially weighing on housing and capital spending. The author’s shift toward cash could signal caution, but it is one investor’s view and may not predict broader market direction.