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A 10-year Treasury yield above 5.3% gives investors a compelling reason to ask whether stocks are still worth the risk. Higher bond yields raise the return available from government debt, and they can pressure stock valuations, particularly for growth stocks whose expected profits sit further in the future.

Yet the headline S&P 500 performance can obscure a more divided market: Mark Malek, chief investment officer at Siebert Financial, says smaller companies, the equal-weight S&P 500, and many sectors were already feeling the strain. Malekm sat down with TheStreet’s Caroline Woods to apply his 35 years of market experience to current market environment — one in which both stock prices and bond yields are near record highs.

Malek’s approach to today’s market is not to abandon stocks or buy every technology pullback. Instead, he aims to separate companies that can finance an artificial intelligence buildout from their own cash flow and broad operating businesses from companies that need more debt, more favorable rates, or uninterrupted spending to justify their valuations.

This differentiation makes Nvidia and Microsoft relevant even in a higher-yield environment, while turning earnings season and forward guidance into a tougher test for the rest of the growth market.

For investors weighing stocks against Treasuries, the decision comes down to the source of a company’s growth, the risks that could interrupt it, and the price paid for that opportunity.

Why higher Treasury yields can hurt stocks beneath the S&P 500

The usual relationship between stocks and bonds is straightforward. When Treasury yields rise, investors can earn more from relatively low-risk investments. That can make stock shares look less appealing, especially growth stocks whose valuations depend heavily on earnings expected years from now. Malek said the effect was already visible beneath the large companies that dominate the S&P 500.

That distinction matters because a capitalization-weighted index gives the largest companies the greatest influence over its daily moves. A handful of giant technology companies can keep the S&P 500 resilient even while a wider group of stocks declines. An equal-weight version of the index gives each member the same starting weight, so it can offer a different view of market participation.

Malek does not argue that growth stocks are immune to rates. He argues that unusually strong business growth can offset some of the pressure from higher yields. The key word here is “some.” Investors who buy a stock solely because it belongs to the artificial intelligence trade may be taking on a risk that is no longer hidden by broad enthusiasm for the sector.

If those growth rates can continue then in fact they can out ski the avalanche right of these higher yields.
Mark Malek, when asked whether higher yields can coexist with rising growth stocks

Malek’s image captures the tension. A company with fast and durable earnings growth may be able to overcome a higher discount rate in investors’ valuation models. A company with less certain growth may not. The market’s response also depends on confidence: Investors who grow uncomfortable with rate headlines can sell even businesses whose long-term outlook has not materially changed.

Related: Cathie Wood buys $7.8 million of surging megacap tech stock

Why earnings season matters more for richly valued technology stocks

The next major test is earnings season. Malek said a growth-led market can keep advancing if companies continue to produce the growth investors expect, but a big earnings miss or weak forward guidance can quickly change the conversation. Forward guidance is management’s outlook for future revenue, spending, demand, or profits, and it often matters as much as the reported quarter for a highly valued stock.

A warning from a chief financial officer about higher costs, slower demand, or larger capital expenditures can carry outsized weight when valuations are already elevated. Capital expenditures, often shortened to CapEx, are a company’s investments in long-lived assets such as data centers, servers, and equipment. Large AI-related spending plans can support suppliers, but they can also worry investors if the spending appears likely to outrun near-term returns.

That is why Malek described a pullback as a potential buying opportunity rather than an automatic one. He said investors can no longer use what he called “peanut butter and jelly mathematics,” meaning a blanket decision to buy the entire growth complex.

Related: Microsoft’s $665 target hinges on a new AI advantage

A declining share price can reflect a marketwide fear that does not alter a company’s prospects, or it can signal that the company’s underlying investment case has weakened. Those are different situations.

For long-term, buy-and-hold investors, the useful question is whether a company’s growth story remains intact after a selloff.

A decline driven by broad concerns about AI spending or interest rates may be worth closer study if the company has a strong balance sheet, reliable cash flow, and several ways to generate revenue. A decline following weaker guidance, mounting debt, or a fading competitive edge calls for more caution.

How Microsoft, Amazon, and Oracle fit different AI risk tiers

Malek’s framework begins with a company’s ability to fund its own ambitions. He placed Microsoft and Amazon in his first tier of AI companies because they have substantial cash flow, strong balance sheets, and major business lines beyond the current AI investment cycle.

That flexibility does not eliminate risk. Microsoft, Amazon, and Meta Platforms are still committing significant resources to AI infrastructure. But Malek’s point is that they can slow spending, lean on other revenue sources, or absorb a period of lower returns more easily than a company whose strategy relies more heavily on borrowed money.

He put Oracle in a riskier second tier because he sees its AI buildout as more dependent on leverage (using debt to finance its investments). Debt can boost returns when a strategy works, but it also makes a company more sensitive to interest rates and to any shortfall in the expected payoff from that investment. Malek said investors should seek a higher expected return when accepting that added risk.

Malek declined to name third-tier companies, describing them generally as newer, more speculative businesses. That restraint is useful. A fast-growing market often encourages investors to treat every company connected to a popular theme as if it has the same financial resources and staying power. It does not.

The practical screen is to ask whether a company can withstand a delayed payoff from AI spending without needing a favorable financing environment.

How to find AI infrastructure companies with pricing power

Artificial intelligence investing extends beyond chip designers and cloud platforms. Malek pointed to Caterpillar, Vertiv, and Eaton as established industrial companies that have benefited from the infrastructure buildout. He said Caterpillar was up 50% year to date, Vertiv was up almost 60%, and Eaton was up 40% at the time of the conversation.

The underlying investment idea is to identify the pressure points within the AI ecosystem. Data centers need power, cooling, equipment, construction capacity, memory, and other inputs. A company that supplies an essential product can have price power, meaning it can charge more without immediately losing demand if customers have few workable alternatives.

Related: JPMorgan just put a different spin on the stock market selloff

Caterpillar illustrates how an existing holding can gain a new source of demand. Malek said Siebert Financial had owned the industrial company for years because it viewed Caterpillar as a well-run business that historically moved with construction spending and economic expansion, including growth in Asia. Its role in AI-related infrastructure was an added tailwind rather than the original reason for owning it.

Investors should still distinguish between a company with a long-lived competitive position and a company benefiting from a particularly strong part of the investment cycle. Equipment demand can be robust while data-center construction accelerates, then cool if customers reduce CapEx. That possibility does not make infrastructure suppliers poor investments, but it does make the durability of demand a central question.

Why NVIDIA has a different long-term case than Micron Technology

Micron Technology shows both the appeal and the risk of investing in an AI bottleneck. Malek said the company was up 270% year-to-date at the time of the interview and still called it a buy because memory is an important component of the AI ecosystem. He also emphasized that Micron Technology is not a permanent holding, in his view, because a slowdown in AI CapEx could sharply affect it.

Micron is very much a buy now, right? Because they control a very important part of the ecosystem.
Mark Malek, when asked whether Micron Technology remained a buy after its year-to-date rally

Malek’s preference, if forced to choose one, was Nvidia. His reasoning was innovation. Nvidia can keep reinforcing its competitive moat, a durable advantage that makes it harder for competitors to take business if it continues to develop new products and capabilities ahead of rivals. He contrasted that possibility with suppliers whose demand may be more cyclical, meaning more closely tied to swings in economic activity or capital spending.

That does not mean Nvidia’s growth can continue at the same pace forever. In fact, Malek explicitly said it would slow.

The distinction is between a company that keeps creating new reasons for customers to buy and a company that depends more heavily on a specific stage of the buildout. Investors considering either stock should decide whether they are seeking a long-term innovator, a potentially powerful but more cyclical supplier, or a mix of both.

Why banks can reveal changes in consumer health

Technology is not the only part of the market worth watching. Malek said financial companies had emerged from a difficult period marked by unstable interest rates and weaker deal flow. Deal flow refers to the volume of potential transactions in areas such as corporate financing and acquisitions. He cited improving M&A, trading, and wealth management conditions as reasons financial stocks had performed well.

Even so, Malek said he was holding rather than buying financial stocks ahead of bank earnings. He wants management teams to address the outlook for deal flow, M&A, capital markets activity, and wealth management. Net interest income, the difference between what a bank earns on loans and investments and what it pays for funding, also matters, but Malek said it was not his only focus.

Large banks can provide an early read on the consumer because they see credit-card use, loan performance, and signs of repayment stress. Malek named JPMorgan Chase, Citigroup, and Wells Fargo as institutions that can help investors assess whether consumers are continuing to spend or are beginning to struggle with credit. He said he has repeatedly worried about consumer weakness and has been wrong so far, because consumers have continued to spend.

His concern helps explain his caution toward consumer discretionary stocks, companies that sell items and services households can postpone when budgets tighten. Malek said he has stayed away from the sector and would watch for broader repricing if consumer health deteriorates. That is a view to monitor against bank results, not a claim that consumer spending has already cracked.

How long-term, buy-and-hold investors can weigh stocks against Treasuries

A 5.3% Treasury yield is a real alternative to stocks, particularly for investors who value predictable income and can commit money for a long period. Malek acknowledged that the broad S&P 500 earnings yield was probably below the 5.3% Treasury yield. Earnings yield is a company’s or index’s earnings divided by its market price, and it offers one way to compare the market’s current earnings power with bond yields.

Malek nevertheless argued that selected stocks could still offer greater upside because their earnings may grow faster. He said expected S&P 500 earnings growth for the next quarter was in the mid-to-high 20% range and that estimates had been edging higher. Those expectations are forecasts, not guaranteed results, and investors should treat them as a reason to examine companies closely rather than as a reason to dismiss bond risk.

For long-term, buy-and-hold investors, the choice should reflect the role each asset plays in a portfolio. Treasuries can offer known income if held to maturity. Stocks can offer greater potential return, but they also carry the risk of price declines, disappointing earnings, and changing valuations.

Malek’s stock-first preference depends on finding companies with strong fundamentals and an investment case that remains open.

The takeaway for investors choosing stocks or Treasuries

Malek’s framework is a reminder that a strong index can conceal important differences among companies. Higher Treasury yields can pressure the wider market while businesses with exceptional earnings prospects remain resilient. The response is not to assume that every AI-linked stock will overcome those pressures. It is to examine balance-sheet strength, cash flow, dependence on debt, exposure to the CapEx cycle, and the company’s ability to maintain a competitive moat.

Investors who prefer the certainty of a 5.3% Treasury yield may reasonably choose that path. Investors seeking equity growth should be prepared to be more selective, listen closely to earnings guidance, and reassess a position when the facts behind the investment change.

Malek’s approach is to stay invested while attractive opportunities remain available, while remaining ready to pivot if those opportunities close.

Related: AI’s biggest business opportunity may not look like AI
Some or all of this content may have been generated by AI. While we strive for accuracy, AI can occasionally produce incorrect information. If you buy something via one of our links, we may earn a commission.

For most of the AI boom, one kind of chip got all the attention. Graphics processors trained the big models, Nvidia sold them, and the older hardware makers took a back seat for years.

That script began to wobble by early June. Agentic AI started pulling those older names higher, while GPU-focused Nvidia lagged the broader chip rally.

Now that trade has fresh momentum. The S&P 500 closed at an all-time high on Oct. 6, one day after the Nasdaq Composite did the same, and tech led the rally once again.

Also read: Bank of America resets AMD price target after major milestone

Muse gives AMD its trillion-dollar moment

Meta unveiled Muse on Sept. 8 as a personal agent that users can interact with like a chat companion.

It is built to be more proactive and longer-running than a typical chatbot. Each one runs on a dedicated virtual machine in Meta’s cloud with its own built-in browser, and the company offers a free tier alongside two paid plans.

Wall Street noticed quickly. On Sept. 10, JPMorgan analyst Doug Anmuth upgraded Meta to Overweight from Neutral and pointed to Muse as part of a growth path that reaches beyond advertising.

By then, the agent had already climbed as high as fourth on the U.S. App Store. That was only its second day, according to TechCrunch.

Then the excitement spilled into chips. On Sept. 21, as Muse topped Apple’s U.S. App Store charts, AMD shares rose nearly 10%. The company’s market value moved past $1 trillion for the first time. It became the fourth U.S. chipmaker to get there, after Nvidia, Broadcom, and Micron.

The gains have kept coming. AMD is up 32% over the past month and Intel 21%, leaving the megacap tech names behind, according to CNBC.

OpenAI has since rolled out a personal agent of its own, called Dots. CPUs are back in the conversation as an important part of the infrastructure needed to keep long-running agents working in the background.

AMD chief executive Lisa SuBloomberg / Getty Images

Why agents lean on the CPU

The logic is simple enough. An agent does not just answer a question. It runs complex, multi-step tasks on its own.

AMD CEO Lisa Su made the point in July. She said AI is no longer just a GPU story and that agentic systems need significant CPU resources for orchestration, data handling, and coordination, as reported by TheStreet.

The products themselves back her up. Ask Muse what it runs on, and it says an AMD-based computer. Dots likewise gets its own cloud computer. Benchmarks and the agents’ own answers suggest that Muse’s virtual computer uses two processor cores, and Dots uses nine.

Analysts were sketching this out months before Muse arrived. “We are constructive on CPU demand as the industry moves to inference and agentic AI which need more CPUs,” Citi analyst Atif Malik wrote in a research note in May, when he raised his price target on Intel, according to TheStreet.

AMD also has a direct line into Meta. The social media company signed on as a lead customer for AMD’s next-generation Venice CPUs under a deal covering up to 6 gigawatts of compute. A meaningful chunk of Meta’s data center build-out is now flowing straight to AMD.

Wall Street redraws its CPU math

Raymond James analyst Simon Leopold got ahead of the move. On Aug. 25, he upgraded AMD to Strong Buy and built his case on server CPUs, a corner of the market that tends to get less attention than graphics chips. “AMD’s growth should enable it to overtake Intel during 2027,” he wrote, according to CNBC.

He was not the first bull. Cantor Fitzgerald analyst C.J. Muse lifted his AMD price target to $700 from $500 on June 29 and kept an Overweight rating, according to investing.com.

More Intel:

5-star analyst aggressively resets Intel stock price target after earnings

Goldman delivers a candid response after Intel’s stunning quarter

Intel makes another painful move in one of its key businesses

Intel has its own supporters. Bank of America analyst Vivek Arya called the emergence of agentic AI “a powerful demand accelerant” and argued it gives Intel a fresh path back into the AI conversation. The bank projected Intel’s server CPU revenue could top $40 billion by the end of the decade.

Intel chief executive Lip-Bu Tan put it more bluntly. “Right now, the demand is very high for my CPU,” he said.

Even so, the big banks are split on the stock. Bank of America and Citi turned bullish, while Wells Fargo kept an Equal Weight rating, reflecting a more cautious view of how much upside remained in the shares.

What could cool the trade

The first risk is price. When Leopold made his call in August, AMD already traded at roughly 41 times projected earnings. Reaching his $641 target meant crossing a trillion-dollar market value. The agentic AI adoption behind his server CPU forecast could also roll out more slowly than today’s models assume.

The second is that GPUs are hardly fading. Nvidia’s market value was closing in on $6 trillion on Oct. 6, a threshold no company has ever reached. Its shares are up 30% this year, helped by a strong revenue outlook and a bigger share buyback.

The third is that AMD’s seat inside these agents is not locked in. A Meta spokesperson said the company designed its system to use whatever kind of CPU is available.

For now, the personal agent boom is lifting the fortunes of AMD and Intel together.

Related: Bank of America warns Apple investors because of Meta’s Muse

As paper check usage continues to plummet, electronic checks (e-checks) have quietly become a workhorse of digital banking.

Powered by the Automated Clearing House (ACH) network, e-checks move billions of dollars annually for recurring bills, large purchases, and business payments.

While they offer steep cost savings over credit cards, they operate under fundamentally different rules than plastic. Knowing how e-checks work, and where their security gaps lie, is critical before linking your direct bank account.

What is an e-check?

An e-check is a digital payment drawn directly from a checking account through the ACH network. Instead of writing paper checks by hand, you provide your checking account number and bank routing number along with formal transaction authorization.

The merchant or payee processes this information electronically, pulling funds directly from your bank account. E-checks are commonly used for a number of regular payments including:

Mortgage payments

Monthly rent payments

Car loan repayments

Membership fees

Tax payments

Credit card payments

Utility payments

E-checks provide a more convenient way to pay versus a traditional paper check, but it’s important to consider both the benefits and potential risks of e-checks.

E-checks offer steep cost savings over credit cards, but operate under fundamentally different rules.Image source: Shutterstock

Key benefits of e-check payments

1. Lower processing fees

Credit card processing fees typically range between 1.5% and 3.5% per transaction. E-checks, in contrast, carry flat processing fees (often under $1.00 per transaction) or low percentages near 0.5% to 1.5%.

For high-ticket purchases — such as rent, tuition, or wholesale vendor payments — e-checks offer buyers and sellers substantial savings.

2. Enhanced security over paper checks

Paper checks are inherently vulnerable. They pass through multiple hands in the mail and explicitly expose account details written on paper.

E-checks substitute physical handling with 256-bit data encryption, tokenization, and digital authentication protocols, significantly mitigating physical theft risks.

3. Seamless automation for recurring bills

E-checks allow consumers and businesses to set up automated recurring payments for subscriptions, insurance policies, or mortgage payments.

Because checking account routing numbers rarely change (unlike credit card expiration dates and reissued card numbers), recurring transactions experience fewer administrative disruptions.

Hidden risks and drawbacks of e-checks

1. Processing delays and bounced fees

Unlike credit or debit card transactions, which approve or decline instantaneously, e-checks can take one to five business days to clear the ACH network.

If funds are lacking when the transfer settles, the transaction bounces, triggering overdraft or returned-check fees from both your bank and the vendor.

2. Strict limits on transaction reversibility

Under Federal Reserve Regulation E, consumers have protection against unauthorized electronic bank transfers. However, dispute resolution for an e-check is often far more burdensome than a credit card chargeback.

If you encounter a merchant dispute over service quality or non-delivery, reversing an e-check is difficult once the funds clear.

3. Direct exposure of checking funds

When an e-check process is compromised, fraudsters gain direct access to cash in your primary bank account.

Unlike credit card fraud, where disputed charges freeze the lender’s money, e-check fraud temporarily drains actual liquid savings until your bank resolves the investigation.

E-checks vs. credit cards vs. wire transfers

FeatureE-Check (ACH)Credit CardWire TransferSettlement Speed1 to 5 Business DaysInstant ApprovalSame Day / MinutesAverage CostFlat Fee ($0.20 – $1.50)1.5% – 3.5% FeeHigh Fee ($15 – $50)Fraud ProtectionModerate (Reg E)Strong (Zero Liability)Very Low (Irreversible)Ideal Use CaseRecurring bills, large purchasesEveryday retail, travelReal estate, high-value urgent wire

The verdict: When should you use an e-check?

Use an e-check for: High-dollar routine bills (rent, tuition, tax obligations, vendor payables) where credit card processing surcharges would add significant cost. E-checks also offer a way to avoid additional debt or interest payments since funds are pulled directly from your checking account. 

Avoid an e-check for: Transactions with unfamiliar online vendors, time-critical purchases requiring immediate delivery, or items where purchase protection and simple chargebacks are required.

Related: Bond ladders: how to build a stairway to stability

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Why we love this deal

Fall is the perfect time to try out a new hobby because we’re naturally inside more as the cold weather rolls in. Baking, reading, and crafting are popular pastimes for this cozy season, but learning to sew can be especially rewarding. Honing your sewing skills leads to so many possibilities. You can mend your favorite clothes if they ever get a hole, make custom curtains for the living room, or create costumes for the school play. Before achieving any of these feats, you need to learn the basics of the craft, and that starts with a sewing machine.

Learning to sew, like any new hobby, can be expensive, and you shouldn’t splurge on a high-end sewing machine until you’ve mastered the basics. The Bcooss Beginner’s Sewing Machine is a great starter machine, and it’s shockingly affordable during Walmart Deals. Originally priced at $80, you can now score the lightweight machine for just $35. Along with the machine itself, you’ll also get a 42-piece sewing accessory kit that has everything you need to get started, like bobbins, thread, a seam ripper, and a thimble.

Bcooss Beginner’s Sewing Machine, $35 (was $80) at Walmart

Courtesy of Walmart

Shop at Walmart

Why do shoppers love it?

Smaller than a standard sewing machine, this lightweight selection has a built-in top handle, so you can carry it wherever you want to get to work. While it plugs in like a traditional unit, you can also opt for battery-powered operation if you’re not near an outlet for added convenience. There’s even a built-in LED light to help brighten up your workspace if you’re in a dark area. Despite its small frame, it has plenty of power to work with thicker materials, like denim or plush cotton. “This little bitty machine is an absolute beast,” wrote one shopper. They explained, “It has been reliably sewing through multiple layers with no issues.”

Related: Amazon’s $49 farmhouse quilt set has a silky-smooth microfiber shell

If you’ve never sewn before, this sewing machine offers user-friendly features for beginners. It has 12 stitching patterns, which you can easily select by rotating the front dial. The variety of stitches allows you to do all kinds of projects, whether quilting, crafting, or hemming pants. Threading the needle is often the hardest part of starting your project, and this machine has simple-to-follow guidelines printed directly on it for a helpful reminder. 

Details to know 

Dimensions: The sewing machine measures 10.8 inches long, 4.8 inches wide, and 10.2 inches tall. 

Weight: The portable sewing machine weighs 5.5 pounds.

Extras: The sewing machine comes with an accessory kit that includes bobbins, thread, needles, scissors, a threader, a tape measure, a seam ripper, buttons, and a thimble. 

The convenience of this machine isn’t limited to first-timers. Many reviewers indicated they had previous experience sewing and were still impressed with its performance. One reviewer raved, “Plugged in the power and gave it a go – works like a dream! Beats my old Singer from 20 years ago.”

Shop more deals

Fixdono Mini Sewing Machine, $20 (was $40) at Walmart

Singer 3337 Special Edition Blush Sewing Machine, $135 (was $180) at Walmart

Brother Computerized Sewing and Quilting Machine, $225 (was $250) at Walmart

If you’ve been wanting to test out your sewing skills, the Bcooss Beginner’s Sewing Machine is a user-friendly machine that even beginners can appreciate. Add it to your cart while it’s still available for only $35.