EDITOR'S NOTE
The Nasdaq Composite rebounded on Friday slightly from its biggest one-day sell-off since October on Thursday. However, the technology-heavy index still fell more than 4% for the week, pressured by rising interest rates.
The Dow Jones Industrial Average and S&P 500 fell, bringing their week-to-date losses to about 1.7% and 2.5%, respectively. The 10-year Treasury yield was the story this week. The yield on the benchmark 10-year got as high as 1.6% on Thursday.
Economists and investment managers believe the bond market is moving on faster-than-expected economic growth as the Coronavirus vaccine rollout boosts GDP forecasts. However, the move in yields could also signal hotter inflation ahead, which could weigh on equity valuations.
Late Friday at the close, the yield eased and Treasury prices increased, perhaps as investors found those yields attractive and rotated some money over into bonds. That kind of asset allocation behavior could also keep a lid on future rate increases. TOP NEWS
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