With the S&P 500 (^GSPC) roughly 2% away from its all-time closing high, investors may be wondering why rising bond yields haven't dealt a heavier blow to stocks — and if the rally from the first eight months of the year still has legs.
"The markets that have been taking their cues from the … strong earnings environment that we've seen," Jeff Schulze, head of economic and market strategy at ClearBridge Investments, told Yahoo Finance.
He pointed to the strength in S&P 500 (^GSPC) earnings, which rose 52% year over year in the second quarter.
" I think that that's going to continue, and we're going to see positive market momentum," he added.
Schulze points to encouraging historical trends showing that when the stock market starts out strong, it typically ends strong.