Stock Market Rally Is Set to Weather Higher Bond Yields, Investors Say

With the soft-landing narrative for the world’s biggest economy gaining traction, the majority of 331 respondents expect losses for S&P 500 Index to be contained to less than 10% should yields on the 10-year Treasury resume their climb and hit 4.5%. That would allow the US equities benchmark to hold on to some of its 18% year-to-date gains.

With the Federal Reserve prepared to keep borrowing costs elevated until inflation is on a convincing path toward the US central bank’s 2% target, there’s more room for yields to rise even further. Federal Reserve Bank of Cleveland President Loretta Mester said on Friday inflation remains too high despite recent improvements.

Survey respondents also predict the yield on the 10-year Treasury inflation-protected securities will be lower five years from now, indicating that real interest rates, defined as nominal rates minus inflation, will come down. The sticking power of the US stock rally in 2023 has taken several market participants by surprise, but bulls point to solid economic growth in the face of high interest rates as a sign of confidence. Outperforming tech names, bolstered by the frenzy for anything artificial intelligence-related, have helped sustain those gains.

United States United States Latest News, United States United States Headlines

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

Stock Market Rally Is Set to Weather Higher Bond Yields, Investors SayThis year’s US stock market rally is strong enough to withstand another leg higher for bond yields, according to the latest Markets Live Pulse survey.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Hong Kong’s Stock Market Liquidity Task Force to Meet This WeekHong Kong’s stock-market liquidity task force will hold its first meeting this week to study methods to expand capital sources and flows, attract more high-quality listings and boost efficiency and competitiveness, the city’s financial secretary Paul Chan wrote in a blog Sunday.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Stock market today: Asian shares surge after Wall St gains on signs the US jobs market is coolingStocks were higher in Asia on Monday after Wall Street was boosted by a report that signaled the US jobs market, while still healthy, is showing some signs of cooling. That supported investors’ hopes that the Federal Reserve may soon ease up on its campaign to slow the U.S. economy by raising interest rates. “It appears that global markets are primed to be smitten with the idea of a ‘Nirvana’ Fed tightening outcome, entailing the ‘immaculate dis-inflation’ that does not cause employment pain,” T
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

The stock market will hit record highs by the end of the year based on Goldilocks scenario, Bank of America saysIn years when the stock market is up 10%-20% heading into September, market returns are positive 65% of the time during the month.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »