High-velocity market swings and the boom theory

NEW YORK: At times in the last few weeks, trying to glean a coherent message from disparate swings across asset classes has been an exercise in futility. Where once surging bond yields and commodity prices spelled big trouble for equities, now stocks are surging alongside them.

Stiffening hawkishness at the United States Federal Reserve (Fed) started out as a reason to panic in risk markets. Now, even the threat of supersized interest-rate hikes isn’t enough to ruffle Wall Street bulls.