Stocks are barely off highs despite high yields and war. Is the market expecting Trump to cave in to high yields like he did last year?

Bond yields are ripping higher at an astounding pace. 5% is within reach for the 10 year. And it makes perfect sense given the indefinite closure of Hormuz, painfully high inflation, and increasing expectations for a Fed rate hike. Yet markets are only 2-3% off all time highs. And just as surprising, the VIX is barely moving higher. Markets have reacted much more violently to similar conditions in the past. When yields made a similar move last year during the Liberation day fiasco, stocks dropped over 15%. So why are stocks barely reacting this time? I understand tech earnings have been solid. Yet non-tech heavy indices like the dow and russell are also barely off all time highs. Rate sensitive indices full of profitless companies should have been crushed by high yields. I personally suspect the muted market reaction is due to expectations that Trump will cave in to rising yet yields again. For context, he eased back on his tariff threats last April after the 10yr exceeded 4.6% and the 30yr exceeded 5%, and specifically cited high bond yields as the reason for granting global tariff relief. Well yields are now higher than they were last year. Are markets expecting Trump to make policy decisions based on high yields again this year? If yields exceed his pain threshold, he could just walk away from the Iran war and privately give in to Iran's demands for concessions. Does this seem to be the base case the markets are pricing in?