The stock market embraced higher yields. Now it fears them.
2 months, 3 weeks ago

The stock market embraced higher yields. Now it fears them.

Live Mint  

The 10-year bond yield came within a whisker of its high from last April on Wednesday morning, and stocks, especially smaller stocks, didn’t like it one bit. They have shifted from thinking that higher Treasury yields are just an unwelcome side effect of the stronger growth promised by president-elect Donald Trump, to worrying that higher borrowing costs might end up being very important. Stocks and bond yields both soared, as investors anticipated a ton of good stuff from a new Trump administration: deregulation and lower taxes to boost growth and tariffs to extract concessions from other countries. Higher bond yields didn’t matter with so much good stuff to dream about. Higher yields caused by stronger growth are usually fine for stocks, because stronger growth means higher profit.

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History of this topic

Stock market: Wall Street rallies as pressure eases from the bond market after Fed decision
2 weeks, 1 day ago

Stock market: Wall Street rallies as pressure eases from the bond market after Fed decision

LA Times  

U.S. stocks climbed Wednesday after the Federal Reserve said the economy still looks healthy enough to keep interest rates where they are. Fed Chair Jerome H. Powell acknowledged the rising pessimism among U.S. consumers and companies in recent surveys, but he also pointed to data showing the economy is solid at the moment, such as a relatively low unemployment rate. …

Stock market today: Wall Street drifts lower as momentum slows for US stocks
2 months, 2 weeks ago

Stock market today: Wall Street drifts lower as momentum slows for US stocks

Associated Press  

NEW YORK — U.S. stock indexes drifted lower Thursday following a mixed set of earnings reports from Morgan Stanley, UnitedHealth Group and other big companies. AP AUDIO: Stock market today: Wall Street’s momentum slows as US stocks drift The AP’s Seth Sutel reports stocks lose momentum after big gains yesterday. When inflation looks to be a bigger problem, whether through …

Wall Street drifts lower as momentum slows for U.S. stocks
2 months, 2 weeks ago

Wall Street drifts lower as momentum slows for U.S. stocks

LA Times  

People pass the New York Stock Exchange on Nov. 5 in New York. U.S. stock indexes drifted lower Thursday following a mixed set of earnings reports from Morgan Stanley, UnitedHealth Group and other big companies. When inflation looks to be a bigger problem, whether through a still-solid economy or possible policies coming from President-elect Donald Trump, Treasury yields have climbed, …

A bond selloff is rocking the world. You might want to take the other side.
Trending News
2 months, 3 weeks ago

A bond selloff is rocking the world. You might want to take the other side.

Live Mint  

Wall Street is really worried about bonds. On Friday, a jobs report that blew past expectations pushed yields on 10-year Treasurys to 4.772%, the highest close since Nov. 1, 2023, and those on 30-year paper to 4.962%. Rather, it might be the result of investors applying a higher discount or “term premium" to hold long-term bonds, estimates by the Federal …

Last Time Bond Yields Surged Like This, Stock Markets Sank
Trending News
2 months, 3 weeks ago

Last Time Bond Yields Surged Like This, Stock Markets Sank

Live Mint  

There’s room for stock markets to fall further as bond yields approach levels that have been painful for equities in recent years. The US 10-year Treasury yield climbed to levels just shy of 4.7%, the highest since April after an almost uninterrupted surge of more than one percentage point since mid-September. “Equity/bond yield correlations have turned negative again,” Goldman Sachs …

Stock market today: Wall Street rises following last week’s slide
4 months, 2 weeks ago

Stock market today: Wall Street rises following last week’s slide

Associated Press  

NEW YORK — Most U.S. stocks ticked higher Monday to recover some of their sharp slide from last week. Investors had sent the S&P 500 nearly 4% higher in the days immediately following Trump’s presidential win. Bank stocks, smaller companies and other areas of the market seen as the biggest winners from Trump’s preference for lower tax rates, higher tariffs …

Stock market today: Wall Street slumps as rising yields crank up the pressure
11 months, 2 weeks ago

Stock market today: Wall Street slumps as rising yields crank up the pressure

LA Times  

U.S. stocks slumped Monday after higher yields in the bond market caused by a strong U.S. economy cranked up the pressure on Wall Street. Traders want lower interest rates, which can give the overall economy a boost, and much of the U.S. stock market’s run to records recently was built on expectations for cuts. In the oil market, a barrel …

Why are bond yields surging around the global markets? - Explained
1 year, 5 months ago

Why are bond yields surging around the global markets? - Explained

Live Mint  

Over the past six months, the international bonds yield has been on a haywire. Sustained expectations of inflation are likely to keep yields above this conventional range, potentially detrimental to economic growth and the stock market, as both household and corporate spending face constraints. The prevailing high bond yields are primarily driven by the market demands for premiums when investing …

Bright start for bonds to new year eases market pressures
2 years, 2 months ago

Bright start for bonds to new year eases market pressures

Live Mint  

Another strong week for the U.S. bond market is giving investors increasing hope that they can turn the page on a brutal 2022. Last week’s consumer-price index report was then also encouraging, hinting at a continued slowdown in the type of services inflation that Fed officials have spotlighted as particularly important. Last year, the S&P 500 fell over 19%, while …

Surge in bond yields could drive growth off track: RBI
4 years ago

Surge in bond yields could drive growth off track: RBI

Live Mint  

The Reserve Bank of India on Friday warned that rising bond yields could undermine the fragile global economic recovery, rendering most economies unable to tolerate high interest rates. In its latest currency and finance bulletin, RBI also pointed to the stubbornly high yields in the Indian bond market, cautioning that rising yields could prompt central banks to boost bond-buying. The …

Powell: Higher inflation temporary, no rate hikes in sight
4 years ago

Powell: Higher inflation temporary, no rate hikes in sight

Associated Press  

WASHINGTON — Federal Reserve Chair Jerome Powell suggested Thursday that inflation will pick up in the coming months but that it would likely prove temporary and not enough for the Fed to alter its record-low interest rate policies. Stock investors, too, dumped shares in the midst of Powell’s remarks, in which he suggested that the Fed would need to see …

Plunging yields force investors and Fed to rethink strategy
5 years ago

Plunging yields force investors and Fed to rethink strategy

Associated Press  

WASHINGTON — The response in stock markets to the growing risk from the coronavirus has been swift and fierce. The plunging yields across bond markets could hamstring the Federal Reserve’s ability to respond to a future recession. The shrunken bond yields will also make it harder for those who invest in them to earn much income: The return on the …

How 3% yields could reshape the investing landscape
6 years, 11 months ago

How 3% yields could reshape the investing landscape

Live Mint  

New York/London: Ten-year Treasury yields sit closer to 3% than at any time in the past four years, prompting investors to dust off their playbooks for how to trade in an era of relatively higher rates. However, periods of stagflation have produced poor results in both the stock and bond markets.” Here’s how some markets may react to the rise …

Battered US bond market may give pause to stampeding stock bulls
7 years, 2 months ago

Battered US bond market may give pause to stampeding stock bulls

Live Mint  

Whether or not Bill Gross and Jeffrey Gundlach are right about the end of the golden era for bonds, the sell-off may give pause to equity bulls after a euphoric and overbought rally. Bank of America Corp.’s James Barty reckons a taper tantrum and benchmark 10-year yields rising another 50 basis points represent the biggest threat to the equity rally …

Beware the ire of bond vigilantes
7 years, 2 months ago

Beware the ire of bond vigilantes

Live Mint  

In mid-November 2017, when the ratings agency Moody’s upgraded India’s credit rating from Baa3 to Baa2 after a 13-year gap, most expected Indian bond market investors to rejoice, and drive down yields. Yet, owing to a number of unfavourable domestic developments, Indian bond markets have actually under-performed most emerging market peers since that upgrade, with yields on the benchmark 10-year …

Hurdles emerge for stocks after rally
8 years, 3 months ago

Hurdles emerge for stocks after rally

Firstpost  

By Chuck Mikolajczak | NEW YORK NEW YORK Benchmark U.S. stock index rallies, in anticipation of fiscal stimulus measures by the incoming administration of President-elect Donald Trump, could also be laying the seeds for equity market troubles from a stronger dollar and rising bond yields.The S&P 500 stock index.SPX has surged over 8 percent since the Nov. 8 election, due …

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