Latest news with #Treasuries
Miami Herald
8 hours ago
- Business
- Miami Herald
S&P 500 hits record high after $10 trillion rally
Wall Street traders dodged a flurry of tariff headlines to drive stocks to all-time highs, capping a week that saw a cooling in Middle East risks and signs the U.S. economy is holding up amid subdued inflation. A rally in Treasuries stalled. The dollar advanced. A surge in equities after April's tariff-fueled meltdown drove the S&P 500 to its first record since February, with the gauge closing above 6,170. Tech megacaps led gains, with Nvidia Corp. approaching the $4 trillion mark and Alphabet Inc. up almost 3%. President Donald Trump touted progress on trade deals with a few countries, naming agreements with China and the UK, while saying he was ending discussions with Canada. The loonie slid. Trump in April put tariffs on dozens of American trading partners on pause for three months a week after declaring them, when investors panicked over the possibility they could trigger a global recession. An over $10 trillion surge in the S&P 500 from the edge of a bear market has defied Wall Street expectations, underscoring conviction that the economy is withstanding policy uncertainty. 'U.S. equities have continued to recover from the tariff induced selloff in March and April,' said David Lefkowitz at UBS's Chief Investment Office. 'We think the recovery makes sense, considering that most large-cap companies should weather the tariffs reasonably well.' Treasury Secretary Scott Bessent signaled there may be some extensions to wrap up major pacts by Labor Day. European Commission President Ursula von der Leyen told EU leaders behind closed doors she was confident a deal could be reached before the deadline, according to people familiar with the matter. And China confirmed details of a trade framework with Washington. On the economic front, consumer sentiment rose sharply in June to a four-month high and inflation expectations improved notably. Data also showed that while the core personal consumption expenditures price index rose slightly more than expected, the pace was seen as consistent with tame price pressures that will allow the Federal Reserve to resume its rate cuts later this year. 'A window of opportunity is more likely to open at one of the final three policy meetings of the year - in September, October or December - when the impact of tariff increases on inflation becomes clearer,' said Gary Schlossberg at Wells Fargo Investment Institute. Fed Chair Jerome Powell told lawmakers this week that he expects inflation to pick up in June, July and August as tariffs become increasingly reflected in consumer prices, though he added if that prediction fails to materialize, the U.S. central bank could resume rate reductions sooner rather than later. Money markets continued to project at least two Fed cuts by the end of this year. Wagers on a third reduction could gain momentum if next Thursday's jobs report is weak. To Bret Kenwell at eToro, the latest PCE reading showed that inflation is still not spiraling out of control. However, it did snap a three-month streak of lower year-over-year readings, while last month's figures were revised higher. 'Today's inflation report shouldn't be enough to give markets a significant scare, but it probably dashes the slim hopes investors had for a July rate cut,' Kenwell said. 'Further, it may give investors a bit of hesitation with stocks surging into record high territory as we near quarter-end.' Kenwell says that stocks can do pretty well in a mild-inflationary environment. 'The key will be a reassuring earnings cycle and a strong consumer as we go into the second half of the year,' he noted. Indeed, with earnings season just weeks away, stocks will get a major test. Wall Street sees profit growth of 2.8% year-over-year for the second quarter for the benchmark, according to data compiled by Bloomberg Intelligence. That would be the smallest jump in two years. The lackluster forecasts magnify concerns from some market watchers that valuations are stretched. The risk of a speculative stock bubble is increasing as expectations of rate cuts draw massive investment flows, according to Bank of America Corp.'s Michael Hartnett. Already this year, $164 billion has flowed into U.S. equities, on course for the third-largest annual inflow in history, he said, citing data from EPFR Global. Corporate Highlights -Nike Inc. said its yearlong sales decline is starting to ease, suggesting that Chief Executive Officer Elliott Hill's strategic moves are paying off. -Apple Inc. and Google's Android have been warned by a top German privacy regulator that the Chinese AI service DeepSeek, available on their app stores, constitutes illegal content because it exposes users' data to Chinese authorities. -Two years after Nvidia Corp. made history by becoming the first chipmaker to achieve a $1 trillion market capitalization, an even more remarkable milestone is within its grasp: becoming the first company to reach $4 trillion. -JPMorgan Chase & Co. shares have soared from an April low on a grab bag of positive developments, but to Baird analysts that's too far, too fast. They downgraded the lender to underperform from a neutral rating, giving the stock its second sell rating. -Shares of Boeing Co. are set to make gains as the company speeds up production of commercial aircraft and takes steps to move on from a series of crises in recent years, according to Rothschild & Co. Redburn, which raised the recommendation on the shares to buy. -Estee Lauder Cos. was raised to buy at HSBC, which sees the cosmetics company at the end of a downgrade cycle. -B. Riley Financial Inc. has sold its financial advisory services business GlassRatner to Canadian private equity firm TorQuest Partners, adding to a series of asset sales as the financial services firm deals with its woes. -Alibaba Group Holding Ltd. unveiled a new iteration of its artificial-intelligence technology that will make it easier for users to generate and modify images from texts and visuals, as the Chinese e-commerce giant continues its aggressive push into AI. Some of the main moves in markets: Stocks -The S&P 500 rose 0.5% as of 4 p.m. New York time -The Nasdaq 100 rose 0.4% -The Dow Jones Industrial Average rose 1% -The MSCI World Index rose 0.6% -Bloomberg Magnificent 7 Total Return Index rose 1.1% -The Russell 2000 Index was little changed Currencies -The Bloomberg Dollar Spot Index rose 0.1% -The euro was little changed at $1.1709 -The British pound fell 0.1% to $1.3709 -The Japanese yen fell 0.2% to 144.72 per dollar Cryptocurrencies -Bitcoin fell 0.8% to $106,926.43 -Ether fell 1.2% to $2,416.73 Bonds -The yield on 10-year Treasuries advanced three basis points to 4.27% -Germany's 10-year yield advanced two basis points to 2.59% -Britain's 10-year yield advanced three basis points to 4.50% Commodities -West Texas Intermediate crude fell 0.1% to $65.15 a barrel -Spot gold fell 1.7% to $3,270.92 an ounce Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Bloomberg
15 hours ago
- Business
- Bloomberg
FDIC Backs Plan on Key Bank Capital Rule Affecting Treasuries
The Federal Deposit Insurance Corp. advanced regulators' plan to ease a key capital rule that big banks have said limits their ability to act as intermediaries in the $29 trillion Treasuries market. The FDIC announced on Friday that it had backed the proposed revisions to what's known as the enhanced supplementary leverage ratio, which requires banks to hold a certain amount of capital relative to their assets.
Yahoo
a day ago
- Business
- Yahoo
Markets Teeter Near Record Highs
Stocks quietly climbed Thursday, with the S&P 500 up about 0.6%just 15 points shy of its all-time highwhile the Dow and Nasdaq each rose roughly 0.7%. Short-dated Treasuries led the bond rally, sending the 2-year yield down to 3.74% and the 10-year to 4.27%. Even the curve from the 5-to 30-year spiked to 101 basis points, its steepest since 2021. On the data front, Q1 GDP was nudged down to 0.5%, yet durable-goods orders unexpectedly jumped in May and initial jobless claims dropped by 10,000. The Chicago Fed's activity gauge ticked up, corporate profits were slightly revised, wholesale inventories dipped, and retail stockpiles (ex-autos) inched higher. With markets flirting with fresh highs, traders are hunting for clues on Fed policy, growth momentum, and which sectors to favorenergy led this rally, while real estate lagged. Now, everyone's eyeing the Senate's tax bill, upcoming Fed testimony, and July's economic calendar to see if the S&P can finally reclaim its record territory. This article first appeared on GuruFocus.
Int'l Business Times
2 days ago
- Business
- Int'l Business Times
US Regulators Propose Looser Leverage Rules To Support Treasury Market Stability
U.S. banking regulators have unveiled a proposal to ease capital requirements on large financial institutions in an effort to bolster liquidity in the Treasury market, which has shown signs of strain in recent months. The proposal targets the enhanced supplementary leverage ratio (eSLR)—a post-2008 financial crisis safeguard that requires the largest banks to hold a set percentage of capital against all assets, including low-risk ones like U.S. Treasuries. Under the revised rule, banks would be permitted to temporarily exclude certain high-quality assets, such as Treasuries and central bank reserves, from the calculation. As reported by the Financial Times, the goal is to reduce disincentives for banks to act as intermediaries in the U.S. government bond market, especially during periods of stress. The move comes amid increased volatility in the Treasury market, driven by fiscal policy uncertainty, including repeated standoffs over the debt ceiling and speculation about future Federal Reserve interest rate cuts. According to the Wall Street Journal, regulators—including the Federal Reserve, FDIC, and OCC—believe relaxing the leverage rule could enhance banks' capacity to absorb and distribute Treasuries, ultimately supporting price stability and smoother rate movements. While industry leaders welcomed the proposal as a step toward modernizing capital rules, critics warn it could inadvertently raise systemic risks. Financial reform advocates argue that loosening capital buffers could make the banking system more vulnerable during future downturns. "This is a clear signal of regulatory retrenchment," said a senior analyst at a Washington-based watchdog group. "It's the first meaningful rollback of Dodd-Frank-era safeguards in over a decade." The proposed rule is now open for public comment through August, with final implementation potentially slated for late 2025. If adopted, the measure would represent a significant policy shift, highlighting the balance regulators are trying to strike between financial stability and market functionality.
Yahoo
2 days ago
- Business
- Yahoo
How the Middle-Class Can Protect Their Paychecks From Inflation in 2025
Many households are feeling the pinch at the grocery store, gas pump and beyond, as the price of everyday goods has increased by 2.5% since last year. However, with a few small shifts, it's possible to stay ahead of rising costs. Discover More: Read Next: From reviewing spending habits to parking savings into a high-yield savings account, here are ways the middle class can protect their paychecks from inflation in 2025. One of the most effective ways to stay ahead of rising costs is to have a clear understanding of your spending habits. When consumers review their expenses, they can identify unnecessary expenditures and make more informed financial decisions. 'Audit your subscriptions,' said Michael Rodriguez, certified financial planner (CFP®) and an advice-only financial planner at Equanimity Wealth. 'Most people forget half of what they're signed up for.' 'You can also reduce takeout without giving up convenience by batch-cooking or prepping meals for busy nights,' he added. 'And sharing streaming or family plans with relatives or friends can cut costs without losing access.' Find Out: In an inflationary environment, saving money isn't about putting money aside; it's about where that money lives. 'Save money from every paycheck,' said Melanie Musson, a finance expert at Clearsurance. 'Even if you only save $100, you'll build a savings account, and you'll know you have an extra $100 every month if inflation drives prices up. If you can save more, that's even better.' Consumers should prioritize high-yield savings accounts or certificates of deposit (CDs) that offer stronger returns than traditional bank accounts. Even small differences in interest rates can add up over time. 'Don't let all your cash sit in a traditional savings account,' Rodriguez said. 'Consider high-yield savings, I-Bonds, or even short-term Treasuries if you want to keep it safe but get a bit more return. 'Invest consistently. The cost of waiting can be greater than short-term inflation. Time in the market still beats timing the market.' Automating transfers on payday can help build consistency, and creating separate savings buckets for emergencies, big purchases and future goals adds structure and clarity to financial planning. When inflation hits, essentials like food and household goods are often the first to rise in price. By adopting more strategic purchasing habits, consumers can reduce costs without compromising quality or convenience. 'If inflation happens, things like food, energy and shelter will be affected the most,' said Lucia Lu, a senior business consultant at Nextpins. 'The good thing to do? Purchase in bulk.' 'Non-perishable items and household essentials such as paper towels or canned items cost less when purchased in bulk. To reduce costs on things like fresh vegetables, look into cheaper alternatives like frozen versions or store brands without giving up on quality.' When inflation rises, cutting back doesn't have to feel like a loss. By making thoughtful adjustments, consumers can reduce spending in ways that are both sustainable and satisfying. 'Cutting down doesn't have to mean sacrificing your quality of life,' Lu said. 'Try cooking at home more often, as it's typically more affordable than takeout or dining out. Reducing your grocery bill doesn't require eating less, just being smarter with meal planning and buying in-season produce.' Lu added, 'Another easy win? Use a cashback credit card to offset some everyday costs.' Managing money during inflation doesn't have to be overwhelming. There are plenty of apps designed to simplify the process. Budgeting tools like Mint, YNAB (You Need a Budget) and Rocket Money help track spending, spot trends and stay on target. For saving and investing, apps like Acorns and Digit automate small contributions that add up over time. Cashback and rebate apps, such as Rakuten, Ibotta, or Fetch, can also help consumers stretch their dollars further on everyday purchases. 'I like You Need a Budget for people who want structure and a fresh start,' Rodriguez said. 'It's great for building more awareness around spending. Empower is another one I recommend to clients who want to track net worth and cash flow in one place without overcomplicating things.' More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on How the Middle-Class Can Protect Their Paychecks From Inflation in 2025
