The bond market’s recent freakout over tariffs and the deficit has received a lot of attention from nervous stock investors, but one chart shows the S&P 500 can keep climbing higher in 2025, according to Goldman Sachs.
Analysts at the investment bank pointed to investor concern swirling around the US bond market, with Treasury yields spiking in recent weeks as traders fretted over the US’s yawning budget deficit and the impact of tariffs on the economy.
Those worries sent the 10-year US Treasury yield — a reflection of long-term interest rate expectations in the economy — past 4.5% in late May. The 10-year yield has since pulled back slightly to trade around 4.4%.
But historically, the 10-year US Treasury yield hasn’t had all that much of an impact on annual S&P 500 returns, the bank said.
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