The S&P 500 is trading just 1.2% below its all-time high, having gained 12% year-to-date. The Nasdaq index is a mere 0.6% shy of its ATH, up 17% since January 1. This comes against the backdrop of 10- and 30-year Treasury yields surging to their highest levels since 2002 🕯Historically, elevated Treasury yields weigh on the stock market as capital rotates into safer assets. However, in an environment of high inflation (3.4% in the US for August), these yields offer limited real financial return.❤️ Bank of America draws parallels to the 1990s, when investors feared missing out on the internet boom. Every dip is swiftly bought up on the promise of the AI revolution. This is evidenced by record-breaking inflows into US ETFs, reaching $1.93 trillion year-to-date.❤️ JPMorgan is likewise banking on equities continuing their rally, anticipating a prompt resolution to the high-yield pressure.💬 US earnings season kicks off in mid-October, with heavyweights Alphabet, Meta, Apple, and Amazon set to report during the final week of the month. Strong earnings results could boost risk appetite, propelling stocks to fresh highs ahead of the congressional elections, while lending momentum to the crypto market as well.