When Interest Rates Rise, Stocks Don't Have to Fall

Low interest rates have helped to fuel the stock market rally, and a climb in rates is eventually expected to snuff it out. At least that’s the theory.

Here’s the reality: In May, rates actually rose quite sharply, as 10-year Treasury yields jumped to 2.16 percent from 1.63 percent. Yet the Dow Jones industrial average still soared more than 400 points, to end the month at 15,115.57.