How High Can Bond Yields Go Before Crashing the Nasdaq 100?
Investing.com | Aug 25, 2023 05:01AM ET
- US 10-year bonds have reached the highest levels since 2007
- PMIs for the US economy continue to show a negative trend
- Meanwhile, a bearish session for the Nasdaq 100 indicates a high risk of further declines
Earlier this week, US 10-year yields reached 4.36%, the highest point in over a decade. This comes as part of a medium-term upward trend that began in April of this year, fueled by both fundamental and technical factors.
The market's concern about rising inflationary pressures and their impact on monetary policy is the primary driver behind the bonds' rally. Currently, the probability of another hike is increasing and is already above 40% for the Fed's November meeting.
As a result, US stock indexes are having a challenging week, and yesterday's weak trading session could potentially further reinforce the downward trend — despite the highly positive surprise in Nvidia's (NASDAQ:NVDA) earnings.
However, the final verdict for the weeks ahead remains uncertain until the culmination of the Jackson Hole symposium later today and Federal Reserve Chair Jerome Powell's speech.
Where Will US 10-Year Bonds Stop?
The U.S. bond market is sending a clear signal that the fight against
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