As the Fed increases short-term rates, investors will keep an eye on how high longer-term US Treasury yields rise. Higher yields more steeply discount the value of future profits, which can especially pressure growth stocks. Fourth-quarter results season kicks into high gear next week, with overall S&P 500 earnings expected to climb 23.1%, according to Refinitiv IBES. Technology sector earnings are expected to rise by 15.6%, as other groups have benefited more from the economy's rebound from pandemic lockdowns in 2020. The Wells Fargo institute has a favourable rating on the tech sector, along with communication services, industrials and financials.
