0655 GMT - Higher bond yields are hitting rate-sensitive sectors first, Saxo Markets chief market strategist Charu Chanana says in a research note. Utilities and real estate sectors face higher refinancing costs and stronger competition from bonds, she notes. "If investors can earn more than 5% from U.S. government debt, stocks need to offer a more compelling return to justify the additional risk," Chanana says. AI has been the market's shelter as strong earnings and balance sheets are helping mega-cap tech withstand higher yields, the strategist notes. As tech stocks have offset the weakness elsewhere, the S&P 500 has appeared resilient despite the bond selloff. However, that means the market is increasingly dependent on a narrow group of companies continuing to deliver exceptional growth, she adds.