Pre-Market Pulse 23rd May – Stocks drift lower as US Debt concerns weigh
Stocks ended flat overnight as dip-buying in tech was kept in check by fragile sentiment amid ongoing concerns over high US debt levels
Stocks ended flat overnight as dip-buying in tech was kept in check by fragile sentiment amid ongoing concerns over high US debt levels
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.
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
Amid global economic unrest, the Australian dollar dips below US65¢, while China faces deflationary pressures. Noteworthy stock movements include CBA’s rise and InvoCare’s notable upswing.