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Interest Rates

David Nelson, CFA CMT | Equities.com |

Last week capped off another powerful month for the broad indices setting up a potential challenge to the all-time S&P high set in February. Of course, the Nasdaq is already there in large part powered by the 5 largest companies (Apple, Microsoft, Amazon, Alphabet and Facebook) that all hit highs in July even if they didn't close there.

With the top five stocks representing 23% of the market cap and just 16% of earnings investors have a right to be nervous asking if there's too much concentration in ...


AP News | Equities.com |

The Federal Reserve expressed concern Wednesday that the viral outbreak will act as a drag on the economy and hiring in the coming months and said it plans to keep its benchmark short-term interest rate pegged near zero.

In a statement at the end of its policy-making meeting Wednesday, the Fed acknowledged that the economy has rebounded from the depths of March and April, when nearly all states closed down nonessential businesses. But i...


AP News | Equities.com |

Global stock markets rose Monday as investors shrugged off worries about rising coronavirus infections in the United States and some other countries and focused on hopes for an economic recovery.

Indexes in London and Frankfurt rose after Shanghai led a market rally in Asia earlier. Wall Street futures also rose.

Markets carried momentum from last week after unexpectedly strong U.S. jobs data despite some American states reporting record new coronavirus in...


AP News | Equities.com |

Stocks closed a choppy day on Wall Street with broad losses Wednesday, despite fresh assurances from the Federal Reserve that it would keep interest rates low through 2022 and would continue buying bonds to help markets function smoothly.The S&P 500 fell 0.5%, extending losses from a day earlier. The benchmark index had briefly climbed 0.5% following the release of the central bank’s latest policy statement. Most sectors finished lower, but a surge in technology sector stocks helped push the Nasdaq above 10,000 for the first time, giving the index its third record high close in a row. Bond yields were broadly lower, reflecting caution among investors.


Reuters | Equities.com |

NEW YORK/SINGAPORE (Reuters) - Negative interest rates in the United States were once unimaginable. The coronavirus has changed that. While the Federal Reserve has all but ruled it out, the sweeping economic and financial-markets impact of the pandemic has forced investors to give serious thought to the implications of such a drastic policy shift. Rate options, which gauge monetary policy expectations, on Monday implied a 23% probability that the key ...


Reuters | Equities.com |

WASHINGTON/TOKYO (Reuters) - Central bankers who have spent a generation researching how their words influence the economy and honing the craft of “forward guidance” are now effectively tongue-tied by a health crisis that has no clear destination yet toward which to guide households and investors. With everything from depression to a sharpish recovery possible over the next six months, the language from Washington to Tokyo has included broad pledges of central bank...


AP News | Equities.com |

WASHINGTON (AP) — The Federal Reserve signaled Wednesday that it will keep its key short-term interest rate near zero for the foreseeable future as part of its extraordinary efforts to bolster an economy that is sinking into its worst crisis since the 1930s. The Fed said it will also keep buying Treasury and mortgage bonds to help keep rates low and ensure that companies can continue to lend easily to each other amid a near-paralysis of the economy caused by the co...


Reuters | Equities.com |

A look at some of the steps the Fed has taken so far to try to keep the US economy from suffering lasting damage.


Marin Katusa | Equities.com |

Ultra low-interest rates and ever depreciating currencies are the new normal. It’s a race to the bottom.


AP News | Equities.com |

It's the lowest level since Freddie Mac began tracking it in 1971.