US stocks trade mixed as Treasury yields hit fresh 16-year highs

 

US stocks appeared tepid on Wednesday as investors grappled with rising interest rates, surging oil prices, and the US dollar coming up on its highest level since November 2022. The yield on the 10-year US Treasury bond climbed eight basis points to eclipse its highest of 4.64% since August 2007. And US crude oil bullishness propelling it to USD94 per barrel and the highest point since August 2022.

More magnifying the taut climate among the markets, the S&P 500 quietly rose 0.02%, while the Dow Jones Industrial Average was slightly down 0.2%, and the tech-heavy Nasdaq Composite flashed 0.22% upside. As may be inferred, investors favored more conservative allocations.

Joining in on the discussion about what fate may lie ahead of markets as stock prices, oil prices, and the US dollar remain so entrenched, is Tesla’s founder and CEO, Elon Musk, who that has forecasted recent union demands for a 40% salary increment will accelerate America’s Big Three automakers into bankruptcy. His counterpart in the Federal Reserve, Neel Kashkari, buttress’ the sentiment that were the Fed to settle with lower-than-tracked inflation, they “would lose all credibility.”

Adding to the trepidation, JPMorgan Chase’s top quantitative strategist has called the present dynamic “echoing 2008” as he fears events’ termination will not incite good sentiment. July’s exultant consumer confidence index has since simmered and is now a four-month low and the Nasdaq index has since fallen 9%.

As commodities waded to their closes: West Texas Intermediate crude rose 3.78%, Brent crude at 2.89%, gold lowered 1.31%, the 10-year bond yields craw at 4.62 %, and Bitcoin additionally took upside road at 0.11%.

Robert Wilson author
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