Rising Yields keep up the Pressure on WALL STREET

 

Rising Yields Keep Up the Pressure on Wall Street 10-year Treasury yield touched its highest level since 2007 trading above 4.3%

10 year Treasury yield touched its highest level since 2007 trading above 4.3%

WALL ST 22-51

 

Wall street traded mixed on Monday and held a bit steadier after sliding for 3 straight week.

The Dow Jones Industrial Average was down 94 points or 0.3%, at 34,406, as of 1:54 pm. Eastern time, and the Nasdaq composite was 1.3% higher The S&P 500 was up 0.4% in afternoon trading.

Economists at Bank of America,meanwhile ,say there’s a chance that Powell will say every upcoming meeting of the Fed has a possibill- ty to see a hike in interest rates given how strong recent economic reports have been.For all the anticipation about Powell's speech, he may not end up sending a strong signal out of Jackson Hole, according to Gold- man Sachs

"We think Powell's tone at Jackson Hole will be less balanced than the July FOMC minutes," they wrote in a BofA Global Research report.

The economy has remained remarkably resilient despite much higher interest rates. While the solid job market and spending by U.S. households eases long-held worries about a possible reces sion, they could also add upward pressure on inflation.

Higher yields are good for bond investors, who get paid more in interest for their investments. But it also makes investors less willing to pay high prices for stocks and other investments that are less steady than US government bonds.