With the path of least resistance for stocks seemingly lower for now, key to watch will be a stabilization in interest rate volatility and clarity on
seemingly lower for now, key to watch will be a stabilization in interest rate volatility and clarity on the path of monetary policy, economists at Charles Schwab report.The upside breakout in Treasury yields has weighed on equity multiples, which expanded since last October without the benefit of earnings growth. The pressure has been more acute on the more richly valued mega-cap tech and tech-oriented stocks. Some reversal is likely needed to establish a better footing for stocks.
Better-than-expected recent economic activity, coupled with sticky inflation, is likely to keep uncertainty regarding Federal Reserve policy elevated. Fed Chair Jerome Powell has his much-anticipated speech at the Fed's annual confab in Jackson Hole later this week. It's possible he could try to establish some calm in the Treasury market.Information on these pages contains forward-looking statements that involve risks and uncertainties.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Asia markets largely set to rise as 10-year U.S. Treasury yield hits 16-year highThe benchmark 10-year Treasury note yield hit a high of 4.34%, reaching its highest level since November 2007.
Read more »
Asia markets largely rise as 10-year U.S. Treasury yield hits 16-year highThe benchmark 10-year Treasury note yield hit a high of 4.34%, reaching its highest level since November 2007.
Read more »
Europe stocks head for higher open; 10-year Treasury yield hits 16-year highEuropean stock markets are heading for a higher open Tuesday.
Read more »
Europe stocks open higher; 10-year Treasury yield hits 16-year highEuropean stock markets opened higher Tuesday after posting cautious gains to start the week.
Read more »
30-year Treasury yield dips from 12-year high after attracting buyersLong-dated U.S. Treasury yields hold steady near their highest levels since 2007 and 2011.
Read more »