OTC MARKET NEWS Powered By Quantifi

Stocks Fall, Treasuries Fluctuate as Traders Weigh Trump Outlook 

November 16, 2016

Rita Nazareth, Yun Li & John Hyland, Bloomberg

U.S. stocks fell, while the dollar and Treasuries were little changed as investors assessed the potential implications of President-elect Donald Trump’s policy outlook. Oil fluctuated.

Banks led losses in the S&P 500 Index, while Apple Inc. paced a rebound in technology companies. The Treasury yield curve flattened, with 30-year bonds outperforming shorter-dated debt, as traders moved toward a consensus that the Federal Reserve will raise interest rates next month. The greenback held near a nine-month high. Oil was little changed after a government report showed demand from U.S. refiners surged and Russia’s oil minister expressed optimism that OPEC would reach a deal.

Expectations that President-elect Donald Trump would expand fiscal stimulus to boost economic growth sparked a bond market rout that this week pushed U.S. 30-year yields to the highest this year and pushed the S&P 500 near a record high. Central bank officials, including Boston Fed President Eric Rosengren, have said more fiscal stimulus would bolster the case for tightening. While investors are on watch for a quicker rise in rates, a report today indicated inflation remains muted as wholesale prices were unexpectedly weak in October.

“Sometimes we have to sit back and take a breath and say ’we’ve gone too far too fast,”’ said Art Hogan, chief market strategist and director of research for Wunderlich Securities in Boston. Read more

Comments are closed on this post.


Submit your email to receive our newsletter