Treasury Yields Are Headed Even Higher. Stocks Won’t Like It.
Tag: Up and Down Wall Street
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Silicon Valley Confronts the End of Growth. It’s a New Era for Tech Stocks.
Silicon Valley could use a reboot. The biggest players aren’t growing, and more than a few are seeing sharp revenue declines. Regulators seem opposed to every proposed merger, while legislators push for new rules to crack down on the internet giants. The Justice Department just can’t stop filing antitrust suits against Google. The initial public offering market is closed. Venture-capital investments are plunging, along with valuations of prepublic companies. Maybe they should try turning the whole thing on and off.
The only strategy that seems to be working is to lay people off. Tech CEOs suddenly are channeling Marie Kondo, tidying up and keeping only the people and projects that “spark joy,” or at least support decent operating margins. Layoffs.fyi reports that tech companies have laid off more than 122,000 people already this year.
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Strong Economic Data Weaken the Case for Continued Stock Rally
The dash for trash has hit a speed bump. Stocks faltered again this past week as the early-year rally, led by rebounds in 2022’s speculative-grade losers, ran into resistance from higher expected interest rates from the Federal Reserve in the wake of persistent inflation readings and few signs that growth is faltering.
Economists at an array of major Wall Street banks, including Goldman Sachs, Bank of America, and Citigroup, lifted their forecasts of the eventual peak in the central bank’s target range for the overnight federal-funds rate, to 5.25% to 5.50%, effectively bringing them in line with the fed-funds futures market. Deutsche Bank now is expecting a 5.6% single-point peak, up a half-percentage-point from its previous estimate, and among the highest forecasts.
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Gold’s Awakening May Make Investors Sleep Less Soundly
Gold’s Awakening May Make Investors Sleep Less Soundly
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Too Much Government Debt Could Become a Big Problem for the Stock Market
It’s always fun until the bill comes due—and the bill always comes due. In fact, it’s coming due right about now.
On Friday, Treasury Secretary Janet Yellen warned Congress that the U.S. would hit its debt ceiling this coming Thursday, earlier than many had expected. That doesn’t mean the government will be forced to stop paying its bills then—Yellen believes that the Treasury has enough cash and other ways to raise money to last it until early June—but it does mean that an issue that was still purely theoretical has become far more pressing as the X date approaches.
