214 days ago • Posted by Paul de La Baume
Higher bond yields pressure #stocks! #trading #forex #markets $QQQ $SPY $AAPL $MSFT $TSLA $GOOGL
Stocks are feeling the heat this morning at the 10 year Treasury yield passes 3.9% again for the first time since December. Expected highs in interest rates worldwide rose in the last week. Forecasts for peak policy rate keep creeping higher as data on economy and inflation is hotter than expected. And odds of a 50 bps interest rate hike in March in the US are on the rise, now priced in at 18%. Rates will likely be higher for longer as recent data shows more demand destruction is needed. That should keep a lid valuation multiples expansion and perhaps continue to exert selling pressure on stocks.