AI has triggered a wave of layoffs on Wall Street! The number of unemployed individuals in the next three years may exceed 200,000.
The report indicated that in the next 3 to 5 years, due to AI 'encroaching' on human jobs, Global Banks will lay off up to 200,000 people, with backend, mid-office, and Operation positions facing the highest risks. At the same time, 80% of respondents expect that generative AI will increase productivity and income by at least 5% during this period.
Fed Signals Delayed Rate Cuts as Inflation Concerns Linger, Goldman Sachs Says
Term Premium on U.S. Treasurys Might Continue to Rise -- Market Talk
Krugman: Is the crazy nature of U.S. debt due to the market believing that Trump will go insane?
Krugman proposed that the rise in long-term interest rates, such as the 10-year U.S. Treasury yield, may reflect a terrifying, quietly spreading doubt that Trump actually believes the crazy things he says about economic policy and might put them into practice.
The Global bond market is experiencing a frantic sell-off, with US Treasury yields quickly approaching 5%.
The 20-year US Treasury yield has already broken through 5%, while the UK 10-Year Treasury Notes Yield has also risen to 4.82%, reaching a new high since 2008. Inflation worries have prompted traders to lower their expectations for interest rate cuts by the Federal Reserve and the Bank of England this year, and at the same time, the market is weighing the impact of President Trump's policies.
The last time the US bonds dropped like this, the US stock market also crashed.
Recently, the rise of the 10-year U.S. Treasury yield is similar to the situation in 2022 and 2023, when the stock market experienced a substantial decline. Goldman Sachs stated that although the U.S. stock market is relatively stable now, the correlation between stock and bond yields has turned negative. If economic data falls short of expectations, the risk of a market correction in the short term may increase.
Consumer Cos Up After Fed Minutes Quell Some Rate Fears -- Consumer Roundup
Yellen: Biden's pandemic spending may "slightly" drive up inflation, a stronger economy fuels U.S. debt selling.
Yellen stated that the government spending following the pandemic is necessary, and that high inflation mainly stems from supply chain issues; she is confident that inflation remains on a downward trajectory; the current sell-off of U.S. Bonds is due to the economy being stronger than expected, leading to a repricing of market interest rate expectations, but the term premium has begun to normalize; she hopes the Trump administration will take the deficit seriously and does not wish to see the 'Bond Vigilantes' make a comeback; after leaving her position as Treasury Secretary, she may return to the Brookings Institution.
Fed Minutes Suggest Officials Will Hold Rates Steady for Now -- 2nd Update
When Traders See the Fed Moving Next on Interest Rates -- WSJ
Continuing with the 10-year U.S. Treasury bond, the newly released 30-year U.S. Treasury bond auction rate has also reached the highest level since 2007.
On Wednesday, the USA Treasury auctioned 22 billion dollars of 30-year government bonds, with the results similar to the Tuesday auction of 10-year bonds, both receiving winning rates that reached new highs since 2007.
FOMC Members Signal Policy 'At or Near Peak' for Tightening Cycle
US10Y Soars About 100 Bps Since Fed Rate Cuts, Signaling a Diverging Inflation Outlook
US Morning News Call | Nvidia CEO's Remarks Trigger Pre-Market Plunge in Quantum Stocks
The three major U.S. stock index futures all turned to decline amid rumors of tariffs from Trump affecting risk appetite | Highlights for tonight.
① It is reported that Trump is considering declaring a national economic emergency to introduce tariffs; ② NASDAQ 100 Index futures dropped over 0.5% in pre-market trading; ③ Meta ended its fact-checking program to extend an olive branch to Trump; ④ The Indonesian government warned that if Apple does not comply with local investment regulations, it may face "sanctions" in the worst-case scenario.
Pre-Market Trading Key Points | Is Trump's tariff plan changing? The December "small non-farm" data will be announced soon.
The three major Equity Index futures in the USA all dropped, with Nasdaq futures down 0.6%, S&P 500 Index futures down 0.45%, and Dow futures down 0.29%.
Will the Federal Reserve's meeting minutes release tonight continue to signal a "hawkish" stance?
This meeting minutes focus on: the degree of divergence among Federal Reserve officials, the determination of the persistence of inflation and the weakness of the labor market, as well as discussions on the rise of neutral interest rates to a higher level. Additionally, the impact of Trump's policies and details related to balance sheet reduction are also worth noting.
Wall Street's New Year interest rate "gamble": from several rate cuts, it has changed to whether rates will remain unchanged or not...
On Tuesday, the 10-year U.S. Treasury yield, known as the "anchor of Global asset pricing," further reached its highest level in eight months; the betting game surrounding the Federal Reserve's interest rate direction seems to have completely shifted from several rate cuts this year to whether further cuts will actually happen...
The selling of U.S. bonds is accelerating, with 5% just around the corner!
As the day approaches for Trump to officially take office as the president of the USA, concerns in the bond market about the inflation outlook are starting to rise, and Wall Street generally anticipates that US Treasury bonds will continue to decline. On Tuesday, the yield on the 30-year US Treasury bond hit a 14-month high at 4.919%, nearing the 5% mark; the yield on the 10-year US Treasury bond climbed to 4.695% on Tuesday, marking the highest level since April of last year.
Countdown to "Trump 2.0"; 10-year U.S. Treasury yields may soar to 5%.
Options indicate that the U.S. 10-Year Treasury Notes Yield could soar to 5%, the highest level since October 2023.