Stocks test 2-month lows as markets adapt to higher for longer Fed rates

  • 📰 startelegram
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 63%

Nigeria News News

Stocks are hovering near the lowest levels in two months, with the dollar extending gains and Treasury yields nudging near new cycle highs, as markets adapt to the new ‘higher for longer’ Fed rate reality.

U.S. equity futures slipped lower Monday, following on from the worst week for Wall Street since March, as investors continue to retreat from risk markets amid a 'higher for longer' mantra on interest rates from western central banks and weakening growth prospects in major global economies.

At the same time, the report noted investors plowing another $2.6 billion in bonds, extending a run of 26 consecutive weekly gains. Global fund managers have also put a collective $1 trillion into cash this year, with both moves suggesting bets that central bank rate cuts remain a long way off with inflation rates more than double forecasts and set to rise further over the coming months.

Markets will get an early test for at least one of those themes later this week, in the form of the August reading of Fed's preferred inflation gauge on Thursday, as well as what could be an early look into autumn consumer spending patterns from Costco's COST quarter earnings update after the close of trading Tuesday.

 

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

 /  🏆 248. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

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

Stocks Poised to Open HigherThe Conference Board reports the September Consumer Confidence Index on Tuesday, and the Bureau of Labor Statistics releases the personal-consumption...
Source: MarketWatch - 🏆 3. / 97 Read more »