Published May 25, 2026 Updated about 2 hours ago By Reuters NEW YORK: High-flying US equities could face turbulence in the final days of a blowout corporate earnings season as investors confront an increasingly tricky backdrop of spiking inflation and rising bond yields. The benchmark S&P 500 wobbled this week but remains less than 1 percent below its all-time high, up more than 8 percent for the year. Strength in earnings has allowed investors to look past negative factors such as higher yields, surging oil prices and the ongoing US-Israeli war with Iran, said Anthony Saglimbene, chief market strategist at Ameriprise, but “company reporting is kind of done now.” “Investors are moving beyond the earnings season, and the macro environment is starting to take more center stage,” Saglimbene said, ahead of a shortened trading week due to the Memorial Day holiday on Monday. A selloff in the bond market has Wall Street on edge. The benchmark 10-year Treasury yield this week hit its highest level since January 2025, while the 30-year yield touched its highest since 2007. Yields, which rise as bond prices fall, pose headwinds for stocks as they increase rapidly, including by pressuring valuations and translating into higher borrowing costs for consumers and businesses. Major factors driving yields higher have been inflationary worries and war-related energy price spikes. “Inflation concerns continue to flare,” said Jim Baird, chief investment officer with Plante Moran Financial Advisors. “You’re seeing upside in long-term Treasury yields that is kind of challenging the bond market and probably puts a practical lid on equities broadly if it persists for some period of time.” A view of inflation is due on Thursday with the April reading of the personal consumption expenditures price index. The release of PCE, the measure favored by the Federal Reserve for setting its 2 percent annual inflation target, follows hot readings this month for other gauges of consumer and producer prices. “It will be another data point that likely shows that months of…