US stocks, particularly the tech-heavy Nasdaq, sold off sharply on Thursday with markets rattled by the latest spike in US Treasury yields with the 10-year T-note reaching 1.6%, it’s highest in more than a year. An anticipation of inflation is accompanying improving economic data and some investors are worried this will force the Federal Reserve to tighten despite Jerome Powell’s statement on Wednesday that they are committed to easy policy. US jobless claims data came in better-than-expected as did durable goods orders. Sometimes the market will take good news as bad news.
Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’
