Goldman Sachs Group Inc. chief global equity strategist Peter Oppenheimer warned that the pace of bond market selloff is key to determining stock resilience. While strong earnings have provided support, a sharp acceleration in bond declines could quickly test equity markets. Oppenheimer, speaking in a Bloomberg Television interview, noted that healthy profits have cushioned stocks by reducing valuations this year.

Bond yields paused their rise Wednesday morning after US data showed a softer note, though global yields remain near multi-decade highs. The bond selloff has been fueled by repricing of US interest rate hike expectations to contain energy-driven inflation. Oppenheimer emphasized that earnings remain positive after years of growth, with companies benefiting from nominal economic expansion.

However, the speed of yield adjustments—not just levels—could impact equities significantly.