US stocks rose on Monday as investors eyed a pullback in Treasury yields following last week's surge in the 10-year Treasury to 14-month highs.
"The reopening trade" lifted Treasury yields to one-year highs in February. This month, it's made bonds more appealing and cut into pricey stocks.
Weekly jobless claims also lifted optimism. Flings fell to 712,000 last week, landing below the previous sum and beating economists' forecasts.
Tech giants and growth names whipsawed before giving up gains as traders flocked to stocks most likely to outperform as the economy reopens.
Some economists fear that, without Fed action, Treasury yields will surge higher, prematurely lift borrowing costs, and hinder the US recovery.
Jerome Powell's comments signal that, despite rising Treasury yields, the Federal Reserve won't lift rates at the first sign of stronger inflation.
Rising Treasury yields most directly slam growth stocks, as their elevated valuations sour when government debt offers stronger returns.
The US added 117,000 private payrolls in February, ADP's monthly report said. That came in well below the 200,000 increase expected.
With the real unemployment rate hovering near 10% and lockdowns in place, the Treasury market is expecting a rapid return to pre-pandemic strength.
GameStop, AMC, and other Reddit favorites declined as retail traders' latest attempt at a short squeeze faltered.
GameStop jumped for a third straight day as Reddit traders called on one another to replicate the volatile rally seen in January.
US bond yields hovered close to one-year highs, with some investors fearing that a further rise could knock the stock-market rally.
US futures slipped on Thursday morning after a rise in bond yields in recent days. WTI oil rose above $US61, with US production falling 40% due to extreme cold weather. US stocks were mixed on Wednesday, with the tech-heavy Nasdaq slipping 0.58%. Sign up here for our daily newsletter, 10 […]
Analysts said the rise in bond yields reflected expectations of stronger growth and inflation. But investors are worried they could weigh on stocks.
US futures flatlined on Wednesday, as Treasury yields stayed at one-year highs. Bond yields have jumped as investors expect stronger growth and inflation. Bitcoin rose to a new high of above $US51,700 while oil prices remained elevated. Sign up here for our daily newsletter, 10 Things Before the Opening Bell […]
Bitcoin rose to a new high of above $51,500, while WTI crude oil stayed at around one-year peaks, thanks to freezing weather in Texas.
Expectations for strong profit growth amid low yields in 2021 should send stocks soaring, said James Paulsen, the chief investment strategist for The Leuthold Group. Historically, periods with yields in their lowest tripartite allow for strong earnings to drive the biggest market gains. With economic reopening around the corner, stocks […]