Wall St Week Ahead: Plunging bond yields boost stocks' allure ahead of Fed meeting

  • 📰 Reuters
  • ⏱ Reading Time:
  • 28 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 97%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Whipsawed U.S. stocks have gained an unexpected ally in recent days - a historic plunge in bond yields.

U.S. government bond yields fell steeply this week, with some durations marking their biggest drops in decades, as investors bet the Federal Reserve would likely curb its aggressive rate hike trajectory to avoid exacerbatingThe volatility in fixed income markets has unsettled investors, and falling yields can reflect expectations that the Fed will cut rates because of a hit to growth.

While the banking crisis has stirred recession fears, "it's the interest rate move that's a ... tailwind for stocks right now," said Charlie McElligott, managing director of cross-asset macro strategy at Nomura.Federal Reserve meeting For now, futures markets indicate that investors are assigning a 60% probability of a 25 basis point rate increase at the Fed's March 21-22 meeting, with rate cuts to follow later in the year - a sharp turnaround from the hawkish expectations that prevailed earlier this month.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

FedEx stock rises after analyst urges investors to buy ahead of earningsFedEx's stock gains after Stifel Nicolaus turns bullish ahead of earnings, saying there is "too much opportunity" for investors to ignore.
Source: MarketWatch - 🏆 3. / 97 Read more »