Surging Treasury yields put the squeeze on stocks as US30Y yields equalled their highs in 2023, which is the highest point in nearly 18 years, amid worries about the economy and the Republican tax bill lacking fiscal responsibility
Stocks snapped a six-day win streak, as the tech rally took a breather, while multi decade highs in global 20Y-30Y bond yields cast a dark shadow over the cost of capital long term. Japanese 20Y yields surged to 25 year highs, while 30Y bonds hit record levels.
Stocks eked out a small gain overnight as retail investors shrugged off warnings from Ratings agency, Moodys, about the spiralling US Government debt.
The negative catalyst of a US credit downgrade, particularly at over extended levels in a Bear market Rally give us an opportunity to hedge with a risk/reward ratio of clos to 5:1 which is a smart trade to take
Moody’s downgrade of the U.S. credit rating from “Aaa” to “Aa1” has immediate and longer-term implications for U.S. stocks. In the short term, the announcement triggered a decline in major stock indexes and a rise in Treasury yields, with the S&P 500 and related ETFs dropping about 1% in after-hours trading following the news
Stocks climbed Friday, notching a big weekly gain, after shrugging off an unexpected dip in consumer sentiment as ongoing optimism about the recent U.S.-China trade continues to support sentiment. However, rating agency, Moodys removed the US AAA rating after the bell sending futures lower
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Stock squeezed out a small gain, led by tech, a day after turning positive for the year amid ongoing optimism surrounding the U.S.-China trade deal.
