U.S. stock investors are warily watching the rise in Treasury yields as a stumbling block for Wall Street's record-setting rally, with particular trouble seen if ​the benchmark 10-year yield jumps abruptly toward 5%.

Higher bond yields pose a number of obstacles for stock performance. These obstacles include stiffer investment competition and pressure on equity valuations, ‌as well as higher borrowing costs, which can eventually stymie economic growth.