US Stocks Face Fed Hike Pressure, Yields Threaten Rally

US stock market braces for potential Fed rate hike, which could curb inflation but pressure equities. Rising Treasury yields threaten stock rally, with the S&P 500 facing a more challenging backdrop. The Fed meeting this week has strengthened expectations for a rate hike, despite some market participants remaining skeptical. The S&P 500 has gained 12% in 2026, but recent pullbacks and rising bond yields could weigh on equities.