With the Federal Reserve moving closer to pulling back on monetary stimulus, a rise in 10-year Treasury yields has made investors nervous. But it will take a bigger move to kill the equity market's run up, Wall Street pros say.
"The Fed is floating the trial balloon of slowing down its purchases, and the market is digesting that news," Gary Flam at Bel Air Investment Advisors said of the recent swings in equities. "Up until about a month ago, tapering was seen as a big negative. If anything, the market may now believe [tapering] is not a bad thing and could be a positive."
With Chairman Ben Bernanke and other Fed officials hinting that a pullback in bond-buying may be coming sooner than expected, yields on the benchmark 10-year note have moved above 2 percent.