Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments, noted that the S&P 500 is only about 2% away from its all-time high, primarily due to a strong corporate earnings environment, with Q2 earnings growing 52% year-over-year. He believes the recent rise in 10-year Treasury yields (reported at 4.93% on Friday, with 30-year Treasury yields near 5.33%) is mainly driven by real rates, reflecting economic growth, AI infrastructure buildout, and a repricing of the Federal Reserve's policy path, rather than surging inflation expectations or a fiscal credibility shock. The market has already priced in expectations for a 25 basis point rate hike by the Federal Reserve on Wednesday.