The S&P 500's Safety Net Is Disappearing. History Says Investors Shouldn't Ignore It.

U.S. stocks have benefited from ultra-low interest rates for over a decade, but Treasury yields are now at two-decade highs (5.32% and 5.70%), reducing the tailwind for equities. However, strong AI-driven earnings growth is offsetting rate pressures, allowing the S&P 500 to hold near all-time highs. While the margin for error is thinning, long-term investors should focus on fundamentals and earnings growth rather than short-term rate movements.