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.
