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Can the 8-Day Winning Streak of US Stocks Continue?
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Certainly, in the wake of the jobs report, the markets are currently estimating a mere 9.8% likelihood that the Federal Reserve will raise i もっと見る
Certainly, in the wake of the jobs report, the markets are currently estimating a mere 9.8% likelihood that the Federal Reserve will raise interest rates at its December meeting, as per the CME FedWatch Tool. This development was met with enthusiasm by both the stock and bond markets, with The S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite achieving an eight-day winning streak. All three indices closed above their 200-day and 50-day moving averages, indicating a sustained positive trend and are likely to continue climbing higher in the future.

In the meantime, bond yields declined, resulting in a rise in bond prices. The 2-year Treasury yield fell by approximately 10 basis points to 4.845%, and the 10-year yield dropped by 9 basis points to 4.577%. This is particularly noteworthy when compared to the 5% yield on the 10-year bond just last month.

However, it's important to note that this doesn't necessarily signify a prolonged upswing in stocks or the end of the higher interest rate environment. Historically, when the Federal Reserve starts reducing interest rates, especially if it does so abruptly, it's an indication that the economy is struggling to the extent that it requires a boost from monetary policy.

🎙️Q:
1. What do you think of this market fluctuation?
2. What's your investment strategy?

View disclosures here.
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