Stock markets gain again after bond yield movement

Stock markets up

After very recent stock market all time highs, the Dow moved back up again. S&P 500 followed suit after its retreat due to recent bond yield gains Dow closed up 600 points at: 31535 with intraday movement seeing over a 700 point rise. The S&P 500 closed up at: 3902, up 91 points on the day. Stocks climbed as confidence returned to markets, with investors shaking off concern about the impacts of higher Treasury yields. Longer term dated bonds continued their selloff even as ‘medium’ term maturities found support, with traders…

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Bond yields and stocks slug it out

Bond yields

Bond yields create fear factor The fears over falling bond prices that gripped the market last week receded on Monday, 1st March 2021, as European stocks and U.S. stock futures rose as bond yields fell. The surge in bond yields bashed equity markets last week, with the technology heavy Nasdaq losing some 5%. Rising yields make the relative valuation of stocks appear worse as yields move in the opposite direction to prices. Central banks Central banks will eventually most likely have to react if there is a sustained rise in…

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