Fluctuations in Wall Street due to binding disorders and inflation problems
Wall Street indicators saw that there were noticeable fluctuations, as stocks were negatively affected by the high income of tires, which increased the anxiety over ongoing inflationary pressure. The equity indicators are subject to significant pressure with exacerbating sales in the world’s largest bond market, amid speculation that the Federal Reserve will not lower before July, due to the risk of inflation. After a recent high wave, the shares lost their momentum on Tuesday, under pressure from a report showing that the price index in the US service sector has reached its highest level since early 2023. The sale in major technology stocks formed a Wall Street trade, where the S&B 500 index fell by more than 1%. The shares of “Invidia” fell 6.2%. Treasury bonds also decreased by the curve, with higher yields for 10 -year -old bonds, which has been to the highest level since 2007, during a $ 39 billion sale. The market is subject to extra pressure due to a wave of investment versions. “High returns are not necessarily a problem for stocks unless the economic basics begin to fail, all bets become feasible.” He added: “But the high yields will be a problem if inflation returns significantly.” For FHN Financial Mark Street, the recent US service report supports the Federal Reserve that interest rate discounts are likely to delay in 2025 due to the risk of high prices. The head of the Federal Reserve in Atlanta, Rafael Bustic, said officials should be cautious due to the uneven progress in reducing inflation. “The federalism is likely to from lowering interest rates at each decision, such as between September and December, to the temporary stop between the discount in 2025,” said Bill Adams of the “Comicsa Bank”, as it happened between September and December, until the temporary stop between the discount in 2025. had risen in the six months in November, while staying in Commercial, while it rose in six months in November, with a return place in Commercial services, while in six months, with a return in the residence, while it was in the highest level, while in the first time in November, it was in the first time in November, while it was in the first time in November, while Six months ago, another demand for workers showed. The “S&P 500” index for a period of less than 5900 points. 0.7%. Strong and negative data on Treasury effects for ten years. America “that traders will return to considering strong economic data negative as it indicates that the Federal Reserve will have to hold interest rates for a longer period.” The fear of growth fades with the transformation of inflation and interest rates to the axis of greater importance, “a team led by the Ohsung -Kooon. The trade of the bars, which until late September does not expect a rescue to the second half of the year. or confidence must give as a result of the positive expectations of growth unless we see a trauma in employment or inflation. Stay, but it can’t be predicted accurately. “At the moment, long -term assets say Godwin that investment in long -term assets is not the favorite choice to endure risks. According to her, market returns are still rising, even if the Federal Reserve reduces the interest rate by 100 basis points “, pointing out that” it is very unusual, because the smooth drop is rare, and because the increase in government spending and revenue of global bonds changes the balance of supply and demand for US debt. “Goodwin estimates that the reasonable series of US Treasury bonds for ten years for ten years will be a ‘broader range of ordinary’ between 3.5% and 5.1%. is, according to the measure’s strategies for investment groups, and indicated that the current levels are near the ‘very cheap’ area using the company’s fair value model. -of yield curve has become excessive tiger compared to ‘fair value’. They added: “If we look at the future, these separation represents the risks that the curve will return to the short term.” However, an anger in the bond market is that Barry and his colleagues are reluctant to start trading to flatten the curve, even if they have seen that the current mile has become ‘transcendent of boundaries’. They added: “We believe that the reaction of the Federal Reserve and structural transformations in the demand for treasury effects supports a more sloping curve, so we are reluctant to swim, unlike this long -term trend.” “Until now, many have been destroyed due to the recent anger attack in the bond market, and although we want to say that the worst has succeeded, there is no indication that short centers have been exhausted or that data supports high expensive,” Thomas Tizores of Strategas said. He added: “It could change with the job report by Friday, and we must assume that by tomorrow there are some cases of profit in the short centers on bonds, with the closure of financial markets Thursday. Tizores also pointed out that this is not only a bad news for US bonds, but also that companies are trading at their lowest levels in terms of modified risks according to the possibility of backwardness, we enter a ‘dangerous area’ of high -risk assets and safe shelters.