Stock market averages (^DJI, ^IXIC, ^GSPC) are declining ahead of Monday's closing bell while bond yields (^TYX, ^TNX, ^FVX) soar as the world waits to see if Israeli could launch a counterattack against Iran following the latter's air assault on Saturday, April 13.

SoFi Head of Investment Strategy Liz Young joins Market Domination to weigh in on whether geopolitical escalations could shake up markets that are already anxious for the first-quarter earnings season.

"We're in a place right now in the market where we are priced for a pretty good environment, and that doesn't necessarily make that super risky, but what it does say is that earnings have to come through at least as strong as investors expect them to, if not stronger," Young says about her general earnings season outlook. "We've already seen with some of the banks that if guidance isn't as strong as investors want it to be, they've been punished."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Luke Carberry Mogan.

Video Transcript

- Stocks, as I just pointed out, are near the lows of the day. Investor sentiment tipping back toward fear-rising tensions in the Mideast from strong economic data here at home. Bond yields have been surging as the world waits on how Israel will retaliate against that unprecedented strike from Iran. Israel's military Chief of Staff saying there will be a response of some kind.

Joining us now, Liz Young, SoFi Head of Investment Strategy. Liz, thank you so much for being here. Obviously, a lot to sift through today. You've got the headlines coming from the Mideast. You have that stronger than expected economic data here. Oh, and by the way, it's also earnings season. So how are you thinking about all these issues?

LIZ YOUNG: There's a lot going on out there. And this day so far has been complete whiplash. We began it really with the relief of maybe not an escalated tension in the Middle East, and then gave all of that back pretty much when we found out that maybe it isn't over after all. So it's hard to argue that after last weekend, things have gotten better. But we are heading into the busier part of earnings season, where we'll get really the data from companies that the rubber hits the road.

I think we're in a place right now in the market where we are priced for a pretty good environment. And that doesn't necessarily make that super risky, but what it does say is that earnings have to come through at least as strong as investors expect them to, if not stronger. We've already seen with some of the banks that if guidance isn't as strong as investors want it to be, they've been punished. So if that theme persists throughout earnings season, the multiple on the S&P right now could be at risk.