Ultra-low Treasury yields – which plunged after the Fed cut interest rates to near-zero – have also increased the allure of stocks.If history is any guide, the stock market should give Biden a warm welcome. The S&P 500 has risen in the first 100 calendar days in eight of the last 10 presidential terms.
Rallying U.S. yields have recently lifted the dollar off its lows, and a more sustained move in the greenback risks sparking an unwind of the market’s near-record bearish dollar position and sparking more gains in the currency.Regardless of where the dollar goes, the incoming administration has signaled it will be less likely to comment on the currency’s fluctuations than Trump, who periodically railed against a strong dollar.
In July, Fitch Ratings revised the outlook on the United States’ triple-A rating to negative from stable, citing eroding credit strength.