A pullback in the S&P 500 could help create conditions for a stronger finish to the year, Morgan Stanley Chief U.S. Equity Strategist Mike Wilson said, as a bond-market selloff pushed Treasury yields to multi-decade highs. The 10-year Treasury yield was near 5.234% Tuesday morning after briefly exceeding 5.26%, while the 30-year yield reached 5.549%. The moves reflect concern that persistent inflation could prompt the Federal Reserve to raise interest rates further. Higher yields have weighed on stocks, lifted the dollar 1.5% against major currencies in September and pushed the 30-year fixed mortgage rate to 7.45%, its highest level since 2024. Morgan Stanley economist Heather Berger said higher borrowing costs would pressure household spending, particularly goods purchases, and forecast real consumption growth to slow by 40 basis points next year. The Dow was heading toward a fourth straight weekly decline, while the S&P 500 and Nasdaq had performed better in recent sessions. The Conference Board’s September consumer confidence index and the August Job Openings and Labor Turnover Survey were due Tuesday at 10 a.m. ET and could add pressure to bond markets.