Rising US Treasury yields are seen as one of the main forces putting downward pressure on stocks in recent months.
The yield on the 10-year Treasury note rose from 4.9% on Wednesday to nearly 5% in the early morning hours, hitting its highest level since 2007.
Wall Street operates in the red, after a series of forces that exert pressure and tension on financial markets.
In that sense, the S&P 500 falls 0.3%, influenced by mixed earnings reports from companies like Tesla and other influential stocks. The pDow Jones Industrial average loses 0.2%while the compound Nasdaq falls 0.3%.
The market of fixed rent It also experiences oscillations. Rising US Treasury yields appears to be one of the main forces putting downward pressure on stocks in recent months.
10-year Treasury yield rose from 4.9% on Wednesday to almost 5%in the early hours of the morning, reaching its highest level since 2007.
Wall Street: fixed income performance, oil and interest rates
In regards to oilprices are retreating after a strong rally the previous day on concerns of potential supply disruptions following developments in the Middle East and the relief of sanctions by Washington on Venezuela.
With all these elements at play, the focus is on Treasury bonds, which act as a reference for most financial markets. The 10-year yield remains relatively stable, reflecting the resilience of the US economy and investors’ acceptance of a new normal, in which the Federal Reserve will likely maintain high interest rates for a long period.
The Federal Reserve is working to control inflation, and high interest rates are one tool to achieve this, but they can also negatively affect the investment, business profits and the economy in general. A high rate environment presents a challenge to a generation of investors that has been accustomed to extremely low rates.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
