Bond yields are approaching a key level that could potentially disrupt the equities rally, according to Morgan Stanley strategists.
“We view 4.35% on the 10-year US Treasury yield as an important technical level to watch for signs that rate sensitivity may increase for equities,” a team led by Michael Wilson wrote in a note. The yield is currently trading around 4.30%.
US equities have been rallying on optimism about better-than-expected economic growth and developments about artificial intelligence. Investors are also looking to this week’s Federal Reserve meeting for confirmation that interest rates are set to be lowered.
“Stocks are now trying to move past their dependence on central bank policy,” Wilson said. “This week’s Fed and BOJ meetings will be important tests to see if that trend holds.”
Against the backdrop of strong job growth and a jump in prices in January and February, Fed officials have repeatedly emphasized they’re in no rush to ease. Most economists surveyed by Bloomberg News expect the policymakers to pencil in three cuts for 2024, with the first move coming in June, though more than a third expect a hawkish surprise of fewer reductions.
Copyright Bloomberg News
Human guidance still wins over AI alone according to new report.
For service-focused financial advisors who might take their well-being for granted, regular check-ins and active listening from the top can provide a powerful recharge.
With Parkworth Wealth Management and its Silicon Valley tech industry client base now onboard, Savant accelerates its vision of housing 10 to 12 specialty practices under its national RIA.
Meanwhile, $34 billion independent First Manhattan welcomed New Jersey-based Roanoke Asset Management, an RIA firm with more than 40 years of history.
Most notably, two chief compliance officers have also recently left the firm.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
