Barclays warns that the US stock market is approaching a critical point, and high yields and rising oil prices increase risks

Barclays stated that the rise in bond yields has weakened the attractiveness of stocks, and the additional returns of stocks compared to bonds are close to decades low, with the US stock market approaching a critical point. Despite the resilience of corporate profitability and the support provided by AI driven growth, market risks have increased due to oil prices surpassing $100 per barrel and major central banks tightening monetary policies worldwide. Barclays maintains its stock overweight rating and expects continued market volatility before the third quarter earnings season, as investors evaluate the stock market's ability to withstand bond yields.