Hangover. | MarketTalk: What’s up today? | Swissquote

Show notes

The New Year unsurprisingly kicked off with a hangover for both stock and bond markets, as investors began the year by closing their positions and taking profit following an impressive two-month rally that was boosted by the expectation that the Federal Reserve (Fed) would soon start cutting the interest rates and cut them thoroughly throughout this year. Last week’s jobs data from the US came in stronger than expected, yet again.
As such, there is no surprise that we see the US 2-year yield rebound to 4.40% and the 10-year yield return past 4% - its biggest weekly advance of the US 10-year yield since October. The rising yields halted the dollar’s bleeding. The EURUSD sank below the 1.10 mark as soon as the year started. The rising US yields also stopped the rally in equities. The S&P500 dipped below 4700 – having been unable to post a fresh record at the end of the latest rally, and the rate-sensitive Nasdaq 100 fell more than 4% since its December peak – which was an ATH.
Investors’ attention shifts to the US inflation data and the earnings from the big US banks that will kick off the earnings season!
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