Rising 10-Year Yield Nears 5%, Pressures Markets as S&P 500 Struggles in High-Rate Climate
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The 10-year Treasury yield remains above 4%, creating a challenging environment for stocks, particularly as strong jobs data reduces the likelihood of Federal Reserve rate cuts in 2025. This situation is putting pressure on the S&P 500.
January 12, 2025 | 2:45 am
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NEGATIVE IMPACT
The 10-year Treasury yield's rise above 4% is pressuring the S&P 500, which is reflected in the performance of the iShares S&P 500 ETF (IVV). Strong jobs data further reduce the likelihood of Fed rate cuts, adding to the challenges.
The iShares S&P 500 ETF (IVV) is directly impacted by the performance of the S&P 500, which is under pressure due to the high 10-year Treasury yield. The strong jobs data further complicate the situation by reducing the likelihood of rate cuts, which could have provided relief.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80