Some strategists foresee stocks climbing even higher, despite the Federal Reserve's expected rate hike on Wednesday.
As bond yields have surged in the weeks following the election — with the 10-year Treasury yield rising from just below 2 percent to above 2.5 percent since Nov. 9 — U.S. equities, too, have rallied to all-time highs.
The yield on the 10-year hit 2.526 percent on Monday, its highest level since September 2014. As The Lindsey Group's Peter Boockvar wrote in a note Monday several hours after this milestone was reached, "The upward lurch higher in the cost of capital continues."
Rates that have been kept low by the Fed's actions have been a major tailwind for the market.
The price of stocks and bonds traditionally move inversely, as investors move to what is considered the safety of government bonds in times of market turmoil, thus pushing rates lower. Investors have fled the bond market with expectations of higher inflation and economic growth under a Donald Trump administration. The face value of a bond decreases as yields rise.
Rates, however, remain low on a longer-term basis. In a chart of the U.S. 10-year Treasury yield going back to the 1940s, Craig Johnson, senior technical research analyst for at Piper Jaffray, points to a period of rising rates in the 1950s at which time equities boomed.
"So from our perspective, we don't think rising rates in here are going to be a problem for equity markets going forward," Johnson said Monday on CNBC's "Power Lunch," pointing to an "inflection point" that we have recently reached.