Market Snapshot: Rising yields put S&P 500 on pace for biggest monthly loss of 2023 as investors brace for Fed Chair Powell’s Jackson Hole speech

by | Aug 20, 2023 | Stock Market

The S&P 500 index is on course for its biggest monthly loss of 2023, jolted by rising Treasury yields as investors face the prospect of the Federal Reserve keeping interest rates higher for longer. In August the yield on the 10-year Treasury note broke out of the 3.5% – 4% channel in which it had been trading, denting valuations in the stock market as it climbed, said Scott Chronert, a U.S. equity strategist at Citigroup, in a phone interview. “It disrupts the paradigm that has been in place for much of this year,” he said. 

The U.S. stock market is slumping this month as investors brace for comments this coming week from Fed Chair Jerome Powell at the Jackson Hole Economic Symposium in Wyoming expected on Friday. Investors are contending with a jump in yields in August while also monitoring possible spillover effects from woes in China, the world’s second largest economy. See: Global investors expect China to deliver a massive fiscal stimulus. Here’s why it may never arrive Although the Fed has slowed its pace of interest rate hikes this year against the backdrop of easing inflation in the U.S., the yield on the 10-year treasury note
BX:TMUBMUSD10Y
jumped this month to its highest level since 2007, startling investors.  “It is ironic that rates have been moving higher” when inflation is coming down “considerably” …

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[mwai_chat context=”Let’s have a discussion about this article:nnThe S&P 500 index is on course for its biggest monthly loss of 2023, jolted by rising Treasury yields as investors face the prospect of the Federal Reserve keeping interest rates higher for longer. In August the yield on the 10-year Treasury note broke out of the 3.5% – 4% channel in which it had been trading, denting valuations in the stock market as it climbed, said Scott Chronert, a U.S. equity strategist at Citigroup, in a phone interview. “It disrupts the paradigm that has been in place for much of this year,” he said. 

The U.S. stock market is slumping this month as investors brace for comments this coming week from Fed Chair Jerome Powell at the Jackson Hole Economic Symposium in Wyoming expected on Friday. Investors are contending with a jump in yields in August while also monitoring possible spillover effects from woes in China, the world’s second largest economy. See: Global investors expect China to deliver a massive fiscal stimulus. Here’s why it may never arrive Although the Fed has slowed its pace of interest rate hikes this year against the backdrop of easing inflation in the U.S., the yield on the 10-year treasury note
BX:TMUBMUSD10Y
jumped this month to its highest level since 2007, startling investors.  “It is ironic that rates have been moving higher” when inflation is coming down “considerably” …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]

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