Wall Street Week Ahead Soaring Stocks Could Face Rocky Patch as Earnings Wind Down Yields Perk Up

Rising bond yields and inflation concerns may pressure equity valuations as earnings season winds down. Higher yields increase discount rates, compressing P/E multiples, especially for high-growth tech and discretionary stocks. Energy price spikes contribute to inflation, potentially delaying Fed rate cuts. Retailers like Costco and Walmart face margin pressure from rising input costs, while Salesforce and other tech firms may see valuation compression. The channel is primarily fx_passthrough (via inflation expectations) and regulatory (Fed policy). Impact is US-specific.