Lower Treasury yields could be good news for some stocks on Wall Street, according to Jefferies Equity Research. Stocks soared on the news, even as Fed Chair Jerome Powell insisted that efforts to tame persistent inflation have further to go. Treasury yields pulled back after the the November Federal Open Market Committee decision, with the benchmark 10-year note falling 15 basis points. With interest rates now seemingly on the backfoot, Jefferies screened for stocks with a negative correlation to the 10-year Treasury — meaning they historically benefit from lower interest rates. Stocks have a negative correlation to U.S. bond yields, notably 5- and 10-year yields Tech behemoth Microsoft is one of the outstanding beneficiaries to a decline in the 10-year.

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Persons: Stocks, Jerome Powell, Dow Jones, Jefferies, Peramunetilleke, Piper Sandler, Horton, Wells, Goldman Sachs, Blackstone, companyies, Michael Bloom Organizations: Treasury, Jefferies Equity Research, Federal Reserve, Labor, Dow, Microsoft, Horton, Jefferies, Blackstone, Vista Equity Partners, Energy Locations: 2H23, Horton