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Posts Tagged ‘interest rates’

Stocks sell off in futures market on Fed’s surprise cut to 0% interest rates

Back on March 3 when the Federal Reserve announced an emergency 50 basis point cut in its benchmark interest rate, stock futures slumped and the Dow Jones industrial average was set to open more than 1,000 points lower on Monday. The fear that swept stocks lower was that the Fed thought the economy was in […]

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Think the Fed got everyone’s attention with a Sunday night interest rate cut to 0%?

On Sunday night the Federal Reserve announced that it would cut interest rates to 0% (actually a policy range of 0% to 0.25%) from the current 1.00% to 1.25% range. The central bank will also resume its program of quantitative easing by buying at least $700 billion in government and mortgage-backed securities. ($5oo billion in […]

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Saturday Night Quarterback says, For the week ahead expect…

...everybody in the financial markets to be trying to guess what the Federal Reserve will do at its Wednesday meeting. Despite the Fed's emergency 50 basis point cut in interest rates, there's still a considerable body of investors and traders who think the Fed will reduce interest rates again on Wednesday. The CME FedWatch tool, […]

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Credit markets are even uglier than stock markets

By now I assume you know that today was another brutal day for U.S. stocks (although markets moved up significantly in the last hour.) The Standard & Poor's 500 closed down another 1.71% and the Dow Jones Industrials dropped 0.98%. The NASDAQ Composite was lower by 1.87% and the Russell 2000 small cap index continued […]

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What now for Treasuries and their ETFs? Should you be buying even at record low yields? I’m adding shares of Vanguard’s 1-3 year Treasury ETF

I'd wager that almost nobody today is buying U.S. Treasuries for their yield. The yield on the 10-year Treasury broke below 1% to 0.9043% for the first time EVER. The 10-year finished the day with a yield of 1.01%. The yield on the 2-year Treasury fell to a low of 0.6223% before closing at 0.71%. […]

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Oops!”Emergency” interest rate cut spurs U.S. stock sell off as Fed creates negative feedback loop

The U.S. Federal Reserve announced an "emergency" 50 basis point cut to its benchmark interest rate. The cut left the Fed benchmark with a range of 1% to 1.25%. The move comes ahead of the Fed's regular meeting on March 18. The interest rate cut, which usually produces a stock rally (and remember the prospects […]

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Most likely stock market trend over next two weeks?

Remember, Buy on the rumor; sell on the news. I think that's the most likely pattern for U.S. stocks over the next two weeks. With the 4.6% gain for the Standard & Poor's 500 on Monday, March 2, U.S. stocks regained almost half of the 11% they had lost in the last 10 days. Just […]

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Trick or trend: Now financial markets are looking for a 50 basis point cut at the March 18 meetng

Our regular (or occasional or perhaps occasionally regular) Friday series (actually running on Saturday this week) Trick or Trend looks at what might (or might not) be emerging investible trends. Exclusively on JAM. This post won't run anywhere else. Ever. I hope that Fed chair Jerome Powell didn't think he was merely "calming" the financial […]

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Saturday Night Quarterback says (on a Sunday), For the week ahead expect…

... the worsening news on the spread of the coronavirus to push yields on U.S. Treasuries even lower as investors and traders look for safe havens. On Friday the yield on the 30-year Treasury set a new all-time low below 1.90% before closing the day at 1.91%. The yield on the 30-year bond has fallen […]

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Unsustainable debt a danger? But it’s so far away, the markets say

Nobody wants to hear that U.S. government and consumer debt aren't sustainable. Not President Donald Trump. Not the financial markets. Today, February 11, Federal Reserve Board Chair Jerome Powell told the House Financial Services Committee that it was important to put  "the federal budget on a sustainable path when the economy is strong" That "would […]

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