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A Bloomberg report has new details about Citigroup's equities division's toxic culture. A lawsuit filed last year said it persisted as late as 2022.

"There are significant market implications arising from the stark contrast in the policies promulgated by the two candidates for president," UBS said.

The benchmark index has been flirting with 5,000 in recent days. UBS strategists say the recent strength in equities has been well-supported.

A slate of economic indicators point to accelerating growth at the start of 2024, and supply chain snags have had little impact on prices.

"In equities, we retain a defensive stance and are unwilling to chase the past two weeks' rally," JPMorgan's Marco Kolanovic wrote.

"We didn't have inflation for 40 years, so everyone sort of forgot about that bond-bad inflation outcome," Wharton's Jeremy Siegel told CNBC.

The consequences of soaring bond yields have become clearer for investors across financial markets.