Some analysts pointed out that if U. , the U. stock market will have further room to fall. Morgan Stanley chief strategist Michael Wilson also warned that as the 10-year U. Treasury yield climbed above 4.5%, it has put pressure on U. stock valuations and U. stocks may face severe challenges in the next six months.
U. Treasury bond yields have continued to rise by 100 basis points since the Federal Reserve began cutting interest rates in September last year, which means that the market has shifted its focus to inflation and the impact of Trump's policies since he took office. The key next step is to look at next week’s CPI data. If the stubbornness of inflation is confirmed again, the pressure on the market will only increase.
The University of Michigan's consumer confidence index in January indonesia telegram data showed that long-term inflation expectations jumped to the highest level since 2008. The data increases risks for next week’s update of inflation measures, with February CPI data expected to accelerate for a third straight month to 2.9% on Jan. 15.
Richard Bernstein Consultants said. “The closer we get to no rate cuts and the closer the 10-year yield gets to new cycle highs, the more investors start to worry about what that means for liquidity, growth and credit issues.”
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Equity ETFs saw net outflows this week
Rising U. Treasury yields also put some pressure on Chinese assets.
On Friday, Chinese stocks fell across the board, with the Nasdaq China Golden Dragon Index falling 3.14% in a single day and 5.09% for the week.