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As the Federal Reserve cuts interest rates, investors should review their bond portfolio, which could see a boost from dovish Fed policy. Typically, bond prices and market interest rates move in opposite directions. While it may be tempting to cling to cash, it will become “less attractive, less productive as interest rates fall,” Ward said. Many corporations leveraged rock-bottom interest rates during the pandemic to strengthen balance sheets and refinance debt, said Ward. As interest rates fall, those longer-maturity bonds should reward investors, experts say.

Persons: ”, Scott Ward, ” Ward, Ted Jenkin, Ward, “, Jenkin Organizations: Federal Reserve, dovish Fed, Fed, Morningstar, Bond, CNBC’s Locations: Birmingham , Alabama, Atlanta, “

☆ As interest rates fall, it's a 'fantastic time' to revisit bonds, advisor says — here's why
▼ + stars: | 2024-10-09 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

As the Federal Reserve cuts interest rates, investors should review their bond portfolio, which could see a boost from dovish Fed policy. However, the Fed policy shift could be good for parts of the bond market, experts say. Typically, bond prices and market interest rates move in opposite directions. "This is a fantastic time to revisit bonds again," said certified financial planner Scott Ward, senior vice president of Compound Planning in Birmingham, Alabama. While it may be tempting to cling to cash, it will become "less attractive, less productive as interest rates fall," Ward said.

Persons: Scott Ward, Ward Organizations: Federal Reserve, dovish Fed, Finance, SEC, Fed Locations: Birmingham , Alabama

☆ Dollar hits one-month peak to yen as Fed seen taking time with rate cuts
▼ + stars: | 2024-10-03 | by ( ) www.cnbc.com time to read: +3 min

The euro languished not far from a three-week trough reached in the previous session, after normally hawkish European Central Bank policymaker Isabel Schnabel took a dovish tone on inflation, cementing bets for a rate cut this month. Currently, traders lay 34.6% odds of another 50 basis-point U.S. rate cut on Nov. 7, after the Fed kicked off its easing cycle with a super-sized reduction last month. "I do think that if the payrolls report overall is not too shabby tomorrow night, then we will see that pricing (for a 50 basis-point cut) coming in quite significantly." The dollar added 0.09% to 146.575 yen after earlier reaching 146.885 for the first time since Sept. 3. The euro was little changed at $1.10455, sitting not far from Wednesday's low of $1.10325, a level last seen on Sept. 12.

Persons: European Central Bank policymaker Isabel Schnabel, Ray Attrill, Attrill, Asahi Noguchi, Sterling Organizations: Federal Reserve, European Central Bank, Private U.S, ADP, Fed, National Australia Bank, Dovish Bank of Japan Locations: U.S, Iran, Israel

☆ Japan still expected to stick to hiking cycle despite PM Ishiba's dovish turn
▼ + stars: | 2024-10-02 | by ( Lee Ying Shan | In Ying-Shan-Lee | ) www.cnbc.com time to read: +1 min

Despite dovish comments from Japanese Prime Minister Shigeru Ishiba leading to a sharp plunge in the yen , market analysts aren't budging from their Bank of Japan policy expectations for the longer term. The yen slid to as weak as 147.15 against the U.S. dollar on Wednesday, after Ishiba told reporters that the current economic climate does not require an additional rate increase. The prime minister's comments marked a drastic change in tone compared with the messaging on his recent campaign trail. On Thursday morning, BOJ board member Asahi Noguchi said that the central bank should continue its accommodative monetary policy for the time being. He noted that it will take a while to change the public's perception that prices will not increase significantly in the future.

Persons: Shigeru Ishiba, aren't budging, Ishiba, Kazuo Ueda —, Abe Shinzo's, Stefan Angrick, Angrick, Asahi Noguchi Organizations: Bank of, U.S, Bank of Japan, Liberal Democratic Party, Moody's, CNBC Locations: Bank of Japan

☆ Where the charts indicate gold is headed next as it rallies on escalating geopolitical tensions
▼ + stars: | 2024-10-01 | by ( Todd Gordon | ) www.cnbc.com time to read: +4 min

Before we get started, it's important to point out that I believe that broader equity markets remain in a secular bull market with global central banks' easing monetary policy amid a backdrop of a boom in artificial intelligence that carries equity markets significantly higher in coming quarters. But the key in my opinion was that real interest rates were going higher. The way I'm defining 'real interest rates' is the prevailing nominal yield on a bond, the 10-year Treasury in this example, adjusted by the expected 10-year inflation level. Put simply, real interest rates are how much you actually earn on a fixed income investment after adjusting for inflation. So my outlook is that gold will continue to rally alongside equity markets.

Persons: let's, Todd Gordon, Gordon, HMY Organizations: Harmony, Equity, Treasury, Stock, Edge, Inside Edge, CNBC, NBC UNIVERSAL Locations: South

☆ The stock market is headed for a 10% correction as the job market slows and inflation stays sticky, Stifel stock chief says
▼ + stars: | 2024-09-30 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The bank's stock-strategy chief pointed to the slowing job market and the potential for sticky inflation. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementThe stock market could be headed into an end-of-the-year correction, according to Stifel's Barry Bannister. The slowing job market has already caught the attention of investors, who are watching for signs of continued economic weakness. "It's very hard to justify getting below 3% without a slowdown," Bannister said of interest rates.

Persons: Stifel's Barry Bannister, —, " Bannister, Bannister Organizations: Service, CNBC, Conference, Challenger, Investors, Investor

☆ Gold pulls back but dovish Fed sets it for best quarter since 2016
▼ + stars: | 2024-09-30 | by ( ) www.cnbc.com time to read: +2 min

Ingots of 99.99 percent pure gold are placed in a workroom at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. Spot gold was down 0.2% at $2,653.38 per ounce, as of 0404 GMT, owing to a rise in the U.S. dollar . A stronger dollar makes gold less attractive for other currency holders. Bullion has risen slightly over 14% so far this quarter, its best since January 2016. This boosted expectations of an another outsized interest rate cut at the Fed's November policy meeting.

Persons: Tim Waterer, nonfarm, Jerome Powell, Michelle Bowman, Waterer Organizations: U.S ., Federal, KCM, U.S, Sunday Locations: Siberian, Krasnoyarsk, Russia, U.S, Israel, Yemen, Lebanon

☆ China stocks see best week since 2008 on stimulus impact as most Asia markets rise
▼ + stars: | 2024-09-27 | by ( Lim Hui Jie | ) www.nbcnews.com time to read: +4 min

Chinese markets clocked their best week in almost 16 years as the mainland’s CSI 300 rallied 15.7% this week, buoyed by several economic stimulus measures by the central bank. The last time the index saw a bigger weekly gain was the week ending Nov. 14, 2008. Hong Kong’s Hang Seng index recorded a weekly gain of 12.75%, making it the index’s best week since February 1998, according to FactSet data. Tokyo’s headline inflation rate eased to 2.2%, down from August’s 2.6%. A slate of fresh U.S. economic data also supported the market’s gains, with weekly jobless claims falling more than expected, pointing to a steady labor market.

Persons: Hong, PBOC, Shigeru Ishiba, Sanae Takaichi, Korea’s Kospi, Australia’s, ’ Organizations: CSI, People’s Bank of China, Google, Shanghai Stock Exchange, Reuters, Japan’s Nikkei, of Japan, U.S ., Micron Technology, Nasdaq, Dow Jones Industrial Locations: China, Shanghai, Asia, Pacific, Tokyo, August’s, U.S

☆ 'Big Short' investor Michael Burry bet half of his portfolio on Chinese stocks. It's finally starting to pay off.
▼ + stars: | 2024-09-26 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

Famed "Big Short" investor Michael Burry is benefiting from the recent surge in Chinese stocks. Burry began aggressively buying Chinese stocks in the fourth quarter of 2022, and it seems to finally be paying off. AdvertisementBurry also has 12% of his portfolio invested in Baidu, and another 12% of his portfolio invested in JD.com. Billionaire investor David Tepper said on Thursday that it's a buy "everything" moment for Chinese stocks. Tepper believes there's more upside to be had in Chinese stocks due to their depressed valuations.

Persons: Michael Burry, —, Burry, Alibaba, David Tepper, Tepper, there's Organizations: Scion, Management, Service, Scion Asset Management, Baidu, People's Bank of China, Alibaba, CNBC Locations: JD.com, China, HedgeFollow, China's

☆ Hedge fund billionaire David Tepper says he's loading up on Chinese stocks after the nation's stimulus bazooka
▼ + stars: | 2024-09-26 | by ( Matthew Fox | ) www.businessinsider.com time to read: +5 min

David Tepper is growing even more bullish on Chinese stocks amid the nation's new fiscal stimulus measures. Tepper views China's stock market as more attractive than the US stock market due to valuation differences. AdvertisementIt's a buy "everything" moment for Chinese stocks after the country launched a fiscal stimulus bazooka this week, according to billionaire investor David Tepper. But Tepper believes Chinese stocks have plenty of room to run higher, even after the recent surges. On US markets, Tepper said he is not following his buy "everything" mantra with Chinese stocks and is being more selective in buying US stocks.

Persons: David Tepper, Tepper, —, Pan Gongsheng, Donald Trump, he's Organizations: Service, CNBC, Fed, Federal, People's Bank of China, PDD Holdings, Tencent Holdings, Management, Wynn Resorts, Vegas Sands, Baidu, China Internet Locations: China, Vegas

☆ 3 things point to a strong stock market rally through December even as election uncertainty looms, Fundstrat says
▼ + stars: | 2024-09-25 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

Lee cites declining margin debt and a dovish Fed as key resons to be bullish on stocks. "We really haven't seen tops until margin debt actually starts to really rollover," Lee said. That "firepower" refers to the fact that FINRA margin debt declined in August to $797 billion, well below its October 2021 peak of $936 billion. AdvertisementThe S&P 500 surged 14% in the first half of 2024, putting this into play. The data shows that since 1950, the S&P 500 has delivered an average second-half gain of 9.8% under such circumstances, with an 83% win ratio.

Persons: Fundstrat's Tom Lee, Lee, —, Tom Lee, there's, Lee crunched, Volcker Organizations: Fed, Service, Federal Reserve

☆ Stock market today: Indexes add to records as traders parse more economic data and Fed comments
▼ + stars: | 2024-09-24 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Investors are parsing through data and Fed commentary to determine future rate cuts. On Tuesday, Fed Governor Michelle Bowman explained why she dissented against a deep cut in September. Go to newsletter preferences Thanks for signing up! Both indexes closed at all-time highs on Monday amid rising outlooks that the Federal Reserve will deliver another half-point interest rate cut in November. To better understand where monetary policy may be headed after the Fed's first rate cut in four years, investors are tuning into Fed commentary and parsing through incoming data.

Persons: Michelle Bowman, —, dovish, Michelle Bowman's, Bowman Organizations: Service, Dow Jones Industrial, Federal Reserve, Fed, Richmond, Here's Locations: Kentucky

☆ Gold holds ground on dovish Fed-speak, Mideast concerns
▼ + stars: | 2024-09-24 | by ( ) www.cnbc.com time to read: +1 min

Gold prices steadied on Tuesday after surging to a record high in the previous session, following broadly dovish comments from U.S. Federal Reserve officials and escalating tensions in the Middle East. Bullion hit a record high of $2,635.29 on Monday. "Gold prices continue to be well-supported amid a series of dovish Fed rhetoric overnight," said IG market strategist Yeap Jun Rong. Chicago Fed Bank President Austan Goolsbee said there are "lots of cuts" to come over the next 12 months, while Fed President Neel Kashkari noted that the actual path would depend on incoming data. "Tensions in the region will likely be kept high for longer, which could see gold prices retain its bullish bias."

Persons: Yeap Jun Rong, Austan Goolsbee, Neel Kashkari Organizations: U.S . Federal Reserve, Chicago Fed Bank, Hezbollah Locations: U.S, ., Israel, Lebanon

☆ Aussie dollar near 2024 high before RBA; yen drifts as Ueda awaited
▼ + stars: | 2024-09-24 | by ( ) www.cnbc.com time to read: +3 min

The Australian dollar hovered close to its highest level of the year on Tuesday, with the central bank set to hold policy steady later and traders focused on any hints of potential near-term easing. The Australian dollar hovered close to its highest level of the year on Tuesday, with the central bank set to hold policy steady later and traders focused on any hints of potential near-term easing. The yen edged up to 143.45 per dollar, but remained close to the center of its September range of 147.20 to 139.58, a more than one-year peak reached on Sept. 16. The yen has retreated amid waning bets for aggressive tightening by the BOJ, particularly after governor Ueda struck a cautious tone of Friday, saying the central bank would spend some time monitoring global growth risks. The BoE kept rates unchanged last Thursday, with its governor saying the central bank had to be "careful not to cut too fast or by too much".

Persons: Kazuo Ueda, —, Pan Gongsheng, Ueda, Sterling, BoE Organizations: U.S, Bank of Japan, Bank of England, Federal Reserve, European Central Bank, Reuters, Commonwealth Bank of Australia, People's Bank of China, P Global Locations: China

☆ Stock market today: Dow ends at a record high as markets see rising odds of another big rate cut
▼ + stars: | 2024-09-23 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

US stocks rose Monday, with the Dow closing at a record high amid hopes for more rate cuts. Odds of a 50 basis point rate cut at the next FOMC meeting increased to 53%, up from 29% last week. AdvertisementUS stocks gained on Monday with the Dow Jones Industrial and S&P 500 closing at record highs as hopes of more Fed interest rate cuts ramped up. According to the CME FedWatch Tool, markets expect the Fed funds rate to fall to below 3% by the end of 2025, from 4.83% on Monday. That lines up with Kashkari's projection for the long-term Fed funds rate to sit at around 2.9%.

Persons: —, Austan Goolsbee, Neel Kashkari, Goolsbee, Kashkari Organizations: Dow, Service, Dow Jones Industrial, Federal, Chicago Fed, Minneapolis Fed, Fed Locations: Chicago

☆ Stock market today: Indexes extend gains as investors gear up for fresh economic data
▼ + stars: | 2024-09-23 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

Investors await key economic data this week, including consumer confidence, revised GDP growth, and the PCE Index. Minneapolis Fed President Neel Kashkari defended the recent rate cut and sees more cuts ahead. AdvertisementUS stocks rose on Monday, with the S&P 500 and Dow Jones Industrial Average testing record highs as investors prepare for fresh economic data this week. Investors will get consumer confidence data on Tuesday, another revision to second-quarter GDP growth on Thursday, and fresh inflation data on Friday with the release of the personal consumption expenditures index. The chatter comes just a few days after the Fed cut interest rates by 50 basis points at the end of its policy meeting last Wednesday.

Persons: Dow Jones, Neel Kashkari, —, Kashkari Organizations: Dow, Minneapolis, Service, Dow Jones, Federal, Governors, CNBC, Fed, Here's

☆ Yen nurses losses as BOJ meets, dollar dogged by rate outlook
▼ + stars: | 2024-09-20 | by ( ) www.cnbc.com time to read: +3 min

Japanese 10,000 yen, left, and US 100 dollar banknotes arranged for a photograph in Tokyo, Japan, on Friday, May 10, 2024. It has been a tough week for the yen, with the euro gaining 2.2% to 159.46 as speculators booked profit on recent long yen positions. The dollar was up 1.4% for the week at 142.84 yen , though off an overnight high of 143.95. "As such, there is scope to further raise the policy rate while keeping financial conditions accommodative," she said. "The recent financial market ructions and the upcoming Liberal Democratic Party election may make the BOJ more cautious about raising."

Persons: Samara Hammoud, Kazuo Ueda, Sterling Organizations: Bank of, U.S ., CBA, 25bp, Liberal Democratic Party, U.S Locations: Tokyo, Japan, Bank of Japan, Samara, China, U.S . Federal, Bank of England

☆ Stock market today: Indexes edge down as traders hit pause after rally to record highs
▼ + stars: | 2024-09-20 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

US stocks traded slightly lower as investors pressed pause on the rally to record highs. The S&P 500 and Dow Jones hit record highs on Thursday after the Federal Reserve's 50 basis point rate cut. Heavy trading is expected on Friday due to option expirations and S&P quarterly index rebalancing. AdvertisementUS stocks traded sightly lower on Friday as investors pressed pause on the ongoing rally to record highs. The so-called triple witching day occurs when there is a simultaneous expiration of stock options, index options, and index futures contracts.

Persons: Dow Jones, —, Thursday's, Jerome, Brian Belski, Michael Reinking, Reinking Organizations: Federal, Service, Dow Jones, Nasdaq, NYSE, Here's

☆ One number shows why the economy might not get the immediate relief many hope for
▼ + stars: | 2024-09-19 | by ( Matthew Fox | ) www.businessinsider.com time to read: +5 min

That rate is the 10-year US Treasury yield, a key lending benchmark for everything from mortgages to corporate debt. "The reaction within Treasury markets was most telling yesterday," Reinking said. AdvertisementHowever, it also means the 10-year Treasury is moving higher since the decision. The 10-year Treasury yield is a lending benchmark for everything from home loans to corporate debt. "That's positive for the economy, and in that case yields should be higher.

Persons: —, Michael Reinking, Reinking, Freddie Mac, Inki Cho, Sonu Varghese, Carson, Jerome Powell's, Varghese Organizations: Service, Federal, Treasury, Business, New York Stock Exchange, Fed

☆ The Fed has poured rocket fuel on the red-hot AI trade
▼ + stars: | 2024-09-19 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

AI stocks surged after the Federal Reserve's 50 basis point rate cut. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. The tech-heavy Nasdaq 100 soared nearly 3% on Thursday, while the underlying AI trade saw even bigger gains. Investors in the stock market's AI trade can thank Fed chairman Jerome Powell for Thursday's risk-on surge in tech, according to Wedbush analyst Dan Ives. AdvertisementIves said that while the AI trade has mainly been focused on Nvidia and Microsoft, other companies are starting to join in on the fun.

Persons: Dan Ives, —, Jerome Powell, Ives Organizations: Federal, Nasdaq, Nvidia, Broadcom, Service, Federal Reserve, Investors, Big Tech, Microsoft, Oracle, Dell, IBM, APple Locations: Asia

☆ The Fed’s rate cuts could have unintended consequences for the housing market
▼ + stars: | 2024-09-18 | by ( Allison Morrow | ) edition.cnn.com time to read: +4 min

The market had become all but impenetrable after mortgage rates went from historic lows in 2020 to their highest levels in a generation last year. “And I think if we even go down to 5.9%, that would be really psychologically impactful to the housing market. The current 6.2% mortgage rate average is, of course, preferable to last year’s peak of 7.8% — a difference that could translate to hundreds of dollars in monthly payments. As my colleague Samantha Delouya wrote this week, a drop in mortgage rates could be a double-edged sword. “A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house.”

Persons: ” Daniel Alpert, Alpert, “, ” Daryl Fairweather, Samantha Delouya, ”, Greg McBride Organizations: New, New York CNN, Federal Reserve, Westwood Capital, Fed, Bankrate Locations: New York

☆ Gold flat as investors focus on Fed
▼ + stars: | 2024-09-18 | by ( ) www.cnbc.com time to read: +2 min

Gold prices were flat on Wednesday as investors weighed chances of an outsized interest rate cut by the Federal Reserve later in the day. Gold prices were flat on Wednesday as investors weighed chances of an outsized interest rate cut by the Federal Reserve later in the day. The Fed is expected to announce a cut to interest rates for the first time in more than four years at 1800 GMT. Markets are now pricing in a 65% chance of a 50-basis-point rate cut, compared with 34% a week earlier, according to the CME FedWatch tool. Zero-yield bullion tends to be a preferred investment in a lower interest rate environment and during geopolitical turmoil.

Persons: Jerome Powell, Matt Simpson, let's Organizations: Federal Reserve, Index Locations: ., Lebanon

☆ Stock market today: Indexes edge up ahead of major Fed interest rate decision
▼ + stars: | 2024-09-18 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

US indexes edged higher as investors waited for a likely interest rate cut from the Fed. AdvertisementUS stocks rose on Wednesday as traders readied for what's likely to be the Federal Reserves's first rate cut in four years. "Though consensus is leaning toward a 50 basis point move, we look for the Fed to cut by 25 basis points today. AdvertisementFollowing the interest rate decision, all eyes will be on Fed Chair Jerome Powell, who will deliver prepared remarks during a press conference. "While the market has usually bounced immediately following the 2 PM rate decision, the sell-off usually starts at or near the end of Powell's post-FOMC press conference."

Persons: Jerome Powell's, —, John Lynch, José Torres, Jerome Powell, Powell, shouldn't Organizations: Fed, Traders, Service, Federal, Comerica Wealth Management, Interactive, Deutsche Bank, Investment

☆ Dollar catches footing ahead of Fed
▼ + stars: | 2024-09-18 | by ( ) www.cnbc.com time to read: +3 min

The dollar steadied on Wednesday as stronger-than-expected U.S. retail sales had traders slightly trimming bets that the U.S. easing cycle will begin with an outsized interest rate cut. The Federal Reserve is expected to make its first interest rate cut in more than four years at 1800 GMT, which will be followed by a news conference half an hour later. A rate cut is fully priced, with interest rate futures implying a 63% chance of a 50 basis point cut, after flirting with 70% a day earlier. Traders say the Fed's tone as well as the size of the rate cut will drive the next moves in the foreign exchange market. China's stock, bond and currency markets resume trade on Wednesday after the mid-autumn festival break, though it is a holiday on Wednesday in Hong Kong.

Persons: Nathan Swami, Swami Organizations: Federal, Traders, Citi, Australian, New Zealand, Sterling, Bank of, ANZ Bank Locations: Buenos Aires, Argentina, Asia, U.S, Japan, Atlanta, Singapore, Hong Kong, Bank of England

☆ The 'Fed put' is back. Here's why central bankers will want to support the stock market, according to Fundstrat's Tom Lee.
▼ + stars: | 2024-09-18 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

That's because the Fed wants a "healthy economy," a big component of which is a strong stock market, he said. AdvertisementThe "Fed put" is back, and stock investors may not be fully pricing in the good news, according to Fundstrat's head of research Tom Lee. The prominent stock bull pointed to the idea that central bankers could move to further ease monetary policy at any sign of weakness in the stock market. AdvertisementA healthy economy, though, hinges on consumer and business confidence, which is largely tied to the stock market, Lee said. We could be seeing turbulence for the next 8 weeks, but this is also in the context of a very strong stock market in 2024," he added.

Persons: Tom Lee, That's, —, Lee, There's Organizations: Fed, Service, Wednesday

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