The USD’s strength after the election has been driven by widening US bond yield spreads against their counterparts due to concerns about inflation in the US due to Trump’s plans for blanket tariffs, mass deportation of illegal immigrants and tax cuts, says Philip Wee, Senior FX Strategist at DBS.
The S&P 500 index falls for the first time in six sessions
“The yield on the 10-year US Treasury bond rose 12.3 basis points to 4.43%, fully recovering from its third-quarter decline despite two Fed cuts in September and November. The “S&P 500 index fell for the first time in six sessions due to profit taking.”
“The index fell 0.3% to 5,984 overnight after hitting the psychological level of 6,000 on Monday, driven by rising US Treasury yields after bond markets returned from the holiday. Veterans Day.”
“With the futures market pulling back more than 100 basis points from next year’s Fed cuts since mid-September, let’s see if investors start to worry about the economic growth hopes built into stocks by Trump’s policies. Be alert to profit-taking risks in Bitcoin after this month’s rise to 90k.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
