The U.S. House narrowly passed President Donald Trump's sweeping tax-cut bill Thursday, triggering a spike in Treasury yields as investors reacted to the bill's multi-trillion-dollar price tag and its long-term implications for debt sustainability. The yield on 30-year Treasury bonds surged to 5.15% in early New York trading, marking the highest level since October 23, 2023.
In a volatile trading session on Wednesday, the S&P 500 and Nasdaq indices faced downward pressure as Treasury yields spiked above 5%. This surge in yields led to a broad selloff, particularly impacting high-growth and tech stocks.
Shares of Lucid Group Inc (LCID) , a U.S. electric vehicle maker, fell 7% to $2.75 on Wednesday afternoon, as rising long-term Treasury yields shook investor confidence in high-growth companies. What To Know: Lucid, like many speculative growth stocks, is sensitive to interest rate changes because higher yields reduce the present value of future earnings, making such stocks less attractive.
The iShares 20+ Year Treasury Bond ETF, a closely watched gauge of long-term U.S. government debt, fell 1.7% on Wednesday to its lowest level in six months. The selloff also reflects deepening concern over America's fiscal trajectory, with long-term yields rising in the wake of Moody's recent downgrade of U.S. sovereign credit.
Mortgage rates have jumped to their highest level in three months as U.S. Treasury yields, driven by rising deficits and fiscal policy fears, push the 30-year benchmark above the critical 5% mark. According to the latest Mortgage Bankers Association report, mortgage application volumes in the U.S. dropped 5.1% for the week ending May 16, the steepest decline in a month.
The U.S. economy is facing a potential crisis as the national debt continues to rise, sparking concerns among economists and analysts. What Happened: Deutsche Bank?s Jim Reid expressed his concerns about the U.S. fiscal situation.
JPMorgan Chase & Co. CEO Jamie Dimon delivered a sobering assessment of the economic landscape at the bank's annual investor day on Monday. The head of the nation's largest bank warned that markets are displaying an "extraordinary amount of complacency" in the face of mounting risks from tariffs, record U.S. deficits and geopolitical tensions.
It's no secret that real estate brokerage and mortgage origination service provider Redfin Corp (RDFN) is struggling. Fundamentally, analysts refer to the above concept as value compression. Regarding interest rates, the Federal Reserve is keeping a watchful eye on core economic metrics.
The Moody's downgrade of U.S. credit on Friday sent shockwaves through markets, driving 30-year Treasury yields to 5% ? a level unseen since October 2023 ? reviving fears about debt sustainability and putting downward pressure on equity valuations across the board. Moody's decision marks the third U.S. credit rating downgrade since 2011, following S&P's move in 2011 and Fitch's in 2023.
The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the ?Greed? zone on Friday. U.S. stocks settled higher on Friday, with the S&P 500 recording gains for the fifth straight session and also notching weekly gains.
Moody's Ratings downgraded the United States' long-term credit rating from Aaa to Aa1 and changed its outlook from "negative" to "stable." ?. The move marks the loss of the United States' last remaining top-tier rating from the three major credit agencies, as Moody's joins Fitch and S&P Global in grading the U.S. below the highest "triple-A" level.
The University of Michigan?s May consumer survey delivered a jarring message to Wall Street and policymakers: sentiment among American consumers has plunged to the lowest levels since June 2020, while expectations for inflation surged to heights last seen during the early 1980s.
Federal Reserve Chair Jerome Powell said Thursday that the central bank is rethinking its approach to inflation and employment, signaling possible changes to the Fed's policy strategy as part of a major review underway in 2025.
April retail sales data showed that the round of tariffs announced by President Donald Trump on ?Liberation Day? started to produce their effects by reducing household consumption.
Jim Cramer thinks that the bond market now offers a clearer risk-reward trade-off than so-called "safety" stocks, warning that rising 10-year Treasury yields and a political "wild card" in Washington make even dividend stalwarts feel shaky.
The Consumer Price Index was 2.3% higher than a year ago, the Bureau of Labor Statistics said Tuesday, below the economists? expectations of 2.4% and the previous reading. The monthly gain was 0.2%, rebounding from a prior decline of 0.1%, yet falling short of a 0.3% forecast.
Shares of Snowflake Inc (SNOW) have climbed 4.9% to $181.90 since Monday's open, tracking broad tech sector gains following a U.S.-China trade breakthrough. What To Know: The two nations agreed to slash tariffs on each other's goods ? U.S. rates falling from 145% to 30%, and China's from 125% to 10% ? in a 90-day de-escalation window starting May 14.
Consumer prices in the U.S. eased faster than expected in April, with fresh tariffs introduced by President Donald Trump appearing not to have a swift and tangible impact on the cost of living. The Consumer Price Index was 2.3% higher compared to a year ago, the Bureau of Labor Statistics said Tuesday, missing economists' expectations of 2.4% and the previous reading.
On Monday, Stephanie Pomboy, the founder of macro research firm MacroMavens, rained on Wall Street?s victory parade following the trade war de-escalation between the U.S. and China. What Happened: Referring to the rally as a ?headline sugar rush,? Pomboy believes the market is misreading the situation.
The Consumer Price Index for April, due Tuesday morning, could test Wall Street's renewed bullishness after a major U.S.-China tariff rollback fueled risk-on sentiment. Despite a slightly defused trade war, the inflation print could tighten the Fed's hand further, especially if prices came in hotter than forecast.
Citadel founder Ken Griffin is sounding the alarm on President Donald Trump?s tariff policies, warning they have ?unleashed an era of crony capitalism? where the government picks ?winners and losers? in the economy. What Happened: ?Tariffs open the doors to crony capitalism,? Griffin told Politico at the Milken Institute?s Global Conference.
After a trade-induced slowdown bruised the economy in early 2025 and with another dip forecast for this coming fall, Wells Fargo says the Federal Reserve is poised to cut rates aggressively amid deteriorating labor market conditions.
Increasing pressure from rising borrowing costs could soon force Washington to scale back its protectionist stance. In a note shared Friday, Hartnett said the U.S. trade deficit hit a record $140 billion in March, highlighting decades of structural imbalances that have pushed American policymakers toward a protectionist posture.
The Federal Reserve kept interest rates steady Wednesday between 4.25% and 4.50%, marking the third consecutive pause in rate policy and extending the wait for potential homebuyers seeking relief from elevated mortgage costs.
10 analysts have expressed a variety of opinions on MarketAxess Holdings (MKTX) over the past quarter, offering a diverse set of opinions from bullish to bearish. In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
U.S. stocks traded higher this morning, with the Dow Jones index gaining over 200 points on Thursday. Following the market opening Thursday, the Dow traded up 0.57% to 41,349.21 while the NASDAQ gained 0.84% to 17,886.92. The S&P 500 also rose, gaining, 0.62% to 5,666.44. Check This Out: Uber To Rally Around 20%? Leading and Lagging SectorsEnergy shares rose by 1.3% on Thursday.
Bank of America is doubling down on its call that the Federal Reserve will not cut interest rates in 2025, underscoring the central bank's growing discomfort with a dual threat of rising inflation and unemployment revealed at this week's policy meeting.
Economist Brad Setser is raising concerns regarding the quiet shift in how China reports its trade surpluses, a change he says is masking billions of dollars in unreported income and capital outflows.
The Federal Reserve kept its fed funds rate steady at 4.25%-4.50% on Wednesday, a widely expected move that marks the third consecutive pause in interest-rate policy. "Uncertainty about the economic outlook has increased further," the Fed noted in its post-meeting statement. The May meeting was the first since President Donald Trump's early April announcement of new trade tariffs.
As Wall Street gears up for Federal Reserve Chair Jerome Powell's press conference on Wednesday at 2:30 p.m. ET, all eyes are on his messaging rather than the central bank?s policy action. The Fed is widely expected to hold interest rates steady at 4.25%-4.50% for a third consecutive meeting, but what Powell says could move markets.
As Federal Reserve officials gather Tuesday and Wednesday to calibrate rates, JPMorgan strategist Mislav?Matejka is warning investors not to count on Wall Street as a recession shelter.
As the Federal Reserve convenes this week, the cryptocurrency market is closely monitoring signals that could influence Bitcoin?s trajectory. With the Fed expected to maintain its benchmark interest rate at 4.25%?4.50% on Wednesday, attention turns to Chair Jerome Powell?s commentary for indications of future monetary policy shifts.
TopBuild Corp. (BLD) shares were trading higher premarket on Tuesday after the company reported first-quarter 2025 sales of $1.23 billion, which was in line with the consensus. Sales declined 3.6% YoY, mainly due to a 6.7% drop in the Installation segment, driven by a slow start in new residential construction.
The two-day Federal Open Market Committee meeting kicks off Tuesday, and concludes with a federal funds rate decision and Fed Chair Jerome Powell?s press conference slated on Wednesday. Economists broadly agree the Fed will keep interest rates unchanged.
The U.S. trade deficit widened sharply to an all-time high in March as American companies rushed to import foreign goods ahead of President Donald Trump?s sweeping new trade tariffs.
Billionaire investor Bill Ackman believes inflation has largely been ?wrung out of the economy? and predicts global economic conflicts could resolve within six to nine months, while advocating for a temporary pause on China tariffs to protect U.S. businesses.
Treasury Secretary Scott Bessent defended President Donald Trump?s economic agenda on Sunday in an op-ed, arguing that the administration?s approach will benefit Main Street while maintaining Wall Street?s strength.
After a bruising tariff-driven selloff in early April, U.S. equities have staged an astonishing comeback. In just 20 trading sessions, the S&P 500 index ? as tracked by the SPDR S&P 500 ETF Trust (SPY) ? has recouped its post-tariff announcement losses and entered May on its longest winning streak since November 2023.
The U.S. manufacturing sector shrank for the second straight month in April, driven by weakening demand and rising price pressures linked to tariffs, according to the latest data from the Institute for Supply Management. The ISM Manufacturing Purchasing Managers? Index fell from 49% in March to 48.7%, its third consecutive monthly decline.
Exxon Mobil Corp (XOM) shares dropped 11.2% in April, trading at $105.68, as the energy giant faces growing pressure from falling crude oil prices and mounting global economic uncertainty.
President Donald Trump renewed his criticism of the Federal Reserve for holding off on interest rate cuts. What Happened: On Tuesday, Trump once again called out the Federal Reserve for not cutting interest rates in an interview with ABC News, marking the 100th day milestone of his second term in office.
The odds that the U.S. slips into recession in 2025 sailed to a record high Wednesday on Polymarket after first-quarter GDP showed a contraction. What happened: Odds jumped to 72% in the early hours on the Polygon-based betting platform before dipping to 62% late in the evening.
President Donald Trump deflects blame for the U.S. economy's 0.3% contraction in the first quarter onto his predecessor, despite clear evidence indicating otherwise. What Happened: On Wednesday, Trump posted on Truth Social, blaming former President Joe Biden for the country?s Gross Domestic Product contracting by 0.3% during the first quarter.
Wingstop Inc. (WING) shares traded higher on Wednesday after the company reported first-quarter results. The restaurant franchise reported first-quarter earnings per share of 99 cents, beating the street view of 90 cents. System-wide sales rose 15.7% to $1.3 billion in the first quarter of FY25. The company added 126 net new locations, with domestic AUV reaching $2.1 million.
Snap Inc's sharp stock fall Wednesday following its first-quarter earnings is weighing on peer platforms like Reddit Inc (RDDT), highlighting investor unease with digital ad-reliant social media companies. Major indexes also declined Wednesday following news of a first-quarter GDP contraction, likely adding pressure to Reddit (RDDT) shares as well.
Following President Donald Trump?s dismissal of two federal labor board members, Federal Reserve Chair Jerome Powell is closely monitoring the situation, given its possible impact on his job security.
At a Michigan rally commemorating the 100th day of his second term, President Donald Trump once again remarked on Federal Reserve Chair Jerome Powell, claiming the superiority of his own knowledge over the former's without taking his name.
Wall Street betting markets are on fire just hours before the first-quarter GDP release, with odds of a negative U.S. growth print soaring after months of trade war escalation and a record-breaking goods deficit. According to Kalshi, a CFTC-regulated prediction market, the probability of a contraction in U.S. GDP for the first quarter surged to 65% on Tuesday, just one day before the data drop.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
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