Live Demo: New Tech to Surpass AI?

I want to show you a free demonstration. Of one of the most incredible technologies you've ever seen. You'll be getting a peek at the cutting edge... A decade from now, you'll remember where you were when you saw this video.

Why are interest rates rising when the Fed has been cutting them?

STAN CHOE
January 16, 2025

NEW YORK (AP) -- What's shaking Wall Street seems so backwards.

Swings in the bond market recently sent the yield on the 10-year Treasury above 4.80% and its highest level since 2023. That's injected nervousness into the U.S. stock market and knocked indexes off their records.

The bond market's moves might seem strange given that the Federal Reserve has lowered interest rates three times starting in September. But it's a reminder that markets care more about the future than the present. And the bond market is worried about potentially higher inflation ahead, along with a U.S. economy that may not need more help from easier interest rates. That's hurting stock prices.

The Fed has cut its main interest rate by a full percentage point since September. The intent is to give the economy breathing room after the Fed earlier hiked the federal funds rate to a two-decade high in hopes of slowing the economy enough to stifle inflation.

But the Fed's influence is limited when it comes to the interest rates that are currently knocking the stock market around, chiefly the 10-year Treasury yield. The Fed controls the federal funds rate, which is a very short-term interest rate that dictates what banks charge each other for borrowing money overnight.

The moves for the 10-year Treasury yield, meanwhile, are set by investors. Those investors do take the Fed's moves into account as they decide how much yield they'll need to earn from U.S. Treasurys before they'll lend money to the federal government. But they're also factoring in where the economy and inflation are heading.

And the 10-year Treasury yield ironically began rising in September, up from 3.65%, just about when the federal funds rate began sinking for the first time since 2020.

The 10-year yield rose, even as the Fed was cutting overnight interest rates, because expectations for both economic growth and for inflation were rising. Much of that is due to a string of reports showing the U.S. economy remains much more solid than expected. Inflation was also more stubborn to ease, though this past week's reading offered more optimism and helped Treasury yields give back some of their big gains.

In late 2018, something similar happened in the market, but in the opposite direction. The Fed had been increasing the federal funds rate since early 2017, and the 10-year Treasury yield likewise climbed for much of that stretch. But the 10-year yield began turning lower before the end of 2018. It even continued to sink after the Fed hiked the federal funds rate in December 2018, guessing correctly that rate increases would stop before putting too much pressure on the economy.

President-elect Donald Trump is also a big factor. His proposals to place tariffs on imported goods could push up inflation, while his preference for lower tax rates could inflate the U.S. government's debt further and scare investors into requiring higher interest rates for the added risk.

The Federal Reserve itself warned recently that it may cut interest rates only twice in 2025 after earlier projecting four cuts. Traders on Wall Street are questioning whether the Fed may not cut short-term interest rates at all in 2025.

Even Wednesday's better-than-expected reading on an underlying measure of inflation wasn't enough to give the market an all clear. "We believe It likely will take several months of slowing inflation to get the Fed -- and the market -- thinking about another rate cut," said Gary Schlossberg, market strategist at Wells Fargo Investment Institute.

Continue Reading...

Popular

In Ukraine, a potential arms-for-minerals deal inspires hope and skepticism

KIROVOHRAD REGION, Ukraine (AP) — The mineral ilmenite is extracted from mounds of sand deep in the earth and refined using a method that summons the force of gravity, resulting in a substance that glimmers like a moonlit sky.

Argentines flock to budget-friendly beaches in neighboring countries as their peso strengthens

VIÑA DEL MAR, Chile (AP) — On a recent hot summer day in Chile, the beaches of Viña del Mar, Concón and Reñaca are packed with holidaymakers sharing and playing ball. Others mill about in the shopping centers on the coast and in the capital, some wearing shirts with Lionel Messi’s name on them, carrying bags full of clothes, video games and mobile phones.

Is This Defi Coin Your Next "10-Bagger" Investment? - Ad

Our #1 pick in decentralized finance is largely overlooked by mainstream investors (for now). This governance token could skyrocket as DeFi adoption surges with the smart money and institutions.

No, Spain isn't banning tourists. Here's what to know before planning a trip

MADRID (AP) — Spain , making the Southern European nation famous for its Mediterranean coastline, sweeping landscapes and historic cities among the most visited countries on earth.

A food bank netted a huge haul of 13,000 fresh salmon. The catch? The fish were still alive

AUBURN, N.Y. (AP) — A New York food bank was offered a huge donation of fresh fish this month — but it came with a catch.

3 AI Stocks Tied to President Trump's White House Return - Ad

Trump's return to the White House coincides with AI's -- and Nvidia's -- continued boom. That's why the President is crucial to Michael Robinson's 2025 AI Blueprint. Michael is a 40-year veteran of Silicon Valley has an AI Blueprint featuring three companies working with Nvidia who could be poised to benefit now that Trump is back in the White House.

DeepSeek News Plunges IT Hardware Stocks, But Analyst Sees 5 Bright Spots Among Tech Giants

IT hardware stocks dip after DeepSeek news, but analyst sees growth potential in Corning, Hewlett Packard Enterprise, Western Digital, Seagate Technology and Apple due to specific catalysts.

Trump's Commerce Secretary nominee, Howard Lutnick, vows to sell his business interests in 90 days

WASHINGTON (AP) — Billionaire financier Howard Lutnick, President Donald Trump's choice to lead the Commerce Department, said Wednesday that he would sell all of his business holdings within 90 days.

The DOGE Agenda (Nine Stocks to Buy) - Ad

One Boston based think tank – who has studied Elon's work for decades – is stepping forward to share what they've found. They believe his TRUE plan is far more radical than anyone realizes. It could change the way you live, work, get paid...AND could make more people rich than all of Elon's previous ventures.

A South Florida luxury condo project is planned for site where building collapse killed 98 people

SURFSIDE, Fla. (AP) — A Dubai-based developer plans to build a 12-story luxury condominium project on the South Florida site where in 2021, killing 98 people.

Tesla, Meta, Microsoft, IBM, Nvidia: Why These 5 Stocks Are On Investors' Radars Today

On Wednesday, January 29, 2025, TSLA, META, MSFT, IBM, NVDA were among the stocks that dominated investor attention on the day Federal Reserve chose to keep the interest rates steady.

Trump Could Make Surprising Tech Announcement Any Day - Ad

Elon Musk is heavily invested in a cutting-edge new technology. In fact, Musk has turned the new president on to this breakthrough. And President Trump could make an announcement any day that could spike the price of stocks in this sector.

Who can share seeds? As climate change and counterfeits hurt Kenyan farmers, it's a growing question

KIKUYU, Kenya (AP) — Tucked away in a lush, forested area of central Kenya's Kikuyu town, the National Seed Bank stands as a crucial safeguard for the future of the country's agriculture. Inside two chilly rooms of a government building, more than 50,000 seed varieties are cataloged and stored.

Shipments of uranium ore can resume under agreement reached with the Navajo Nation

Shipments of uranium ore from just south of the Grand Canyon are expected to resume in February after the Navajo Nation reached a settlement with the mining company, clearing the way for trucks to transport the ore across the largest Native American reservation in the U.S.

Love or Hate Him -- You Have To See What Elon Could Do Next - Ad

It's not electric vehicles, green energy or space travel that Elon Musk will be remembered for.

Senate confirms Zeldin to lead Environmental Protection Agency as Trump vows to cut climate rules

WASHINGTON (AP) — The Republican-controlled Senate on Wednesday confirmed Lee Zeldin to lead the Environmental Protection Agency, a key role to help President Donald Trump fulfill his pledge to roll back major environmental regulations, including those aimed at slowing climate change and encouraging use of electric vehicles.

Kansas City Battles Major Tuberculosis Outbreak, 67 Active Cases, Hundreds Under Watch

Kansas City faces one of the worst U.S. tuberculosis outbreaks, with 67 active cases and 384 people under monitoring.

22X Better Than Bitcoin... Without Crypto - Ad

For every $1,000 made in Bitcoin... you could have made as much as $22,000 with this strategy. legendary former hedge fund manager Larry Benedict calls it "Bitcoin Skimming." And get this... it's CRUSHING Bitcoin's returns. If you want to get in on the ground floor then watch this free interview NOW.

Trump White House Puts DeepSeek Under National Security Scanner: 'Wake-Up Call To The American AI Industry'

The White House is reviewing China's DeepSeek AI for potential national security risks, amid growing concerns over intellectual property theft and its impact on U.S. AI dominance.

270x More Lucrative Than NVIDIA? - Ad

If you've missed out on NVIDIA's recent 1,600% run... Don't worry. Because there's one AI stock that could be a lot more lucrative. It's currently trading for only $20.

Bill Ackman Questions Whether DeepSeek AI's Hedge Fund Affiliate Profited From Nvidia's Sell-Off: 'A Fortune Could Have Been Made'

Billionaire investor Bill Ackman questioned whether DeepSeek's hedge fund affiliate potentially profited from Monday's tech stock rout, which saw Nvidia Corp. shares plunge 17% following the Chinese artificial intelligence startup's emergence as a potential disruptor.

Coinbase Taps Trump's Campaign Manager, Chris LaCivita To Tackle Crypto Policy In Washington

Coinbase adds former Trump campaign manager and Senator Sinema to advisory team, highlighting crypto's efforts for influence and clear regulations.

Get Your Piece of the $5.39 Billion by March 25... - Ad

Once you hear more about what these AI firms have been up to...You'll feel like you're owed the $3,452.50 that is being paid out to folks like you every month. The opportunity to grab the next payout ends on March 25 -- so be quick.

Trump Slams Fed's 'Terrible Job' On Bank Regulation After Rate Hold, Vows To 'Unleash Lending For All American People'

President Donald Trump criticized the Federal Reserve's handling of inflation and banking regulation on Wednesday, following the central bank's decision to hold interest rates steady at 4.25%-4.5%.

White House blocks AP reporter from Trump-Modi news conference because of Gulf of Mexico fight

The White House blocked an Associated Press journalist from covering a news conference with two major world leaders Thursday, upping the stakes in a disagreement between the news agency and the Trump administration over AP's style decision to stick with the name “Gulf of Mexico” for the body of water that the president rechristened the “Gulf of America.”

Elon Musk's Final Move - Ad

Elon Musk is DONE. He's finished. Because his latest project may be the last one he'll ever take on. I'm talking about his new, secretive AI startup. Elon's AI promises to be 100 times better than ChatGPT. That's why you need to get all the urgent details on what I call "Elon's #1 AI stock."

7 AI Infrastructure Stocks Plunge Over 20%, Outpace Semiconductor Rout As DeepSeek Upends Investment Landscape

The launch of DeepSeek affects the AI boom including the power, cooling and data center giants that once rode the AI euphoria, which now have single-day losses exceeding 20%.

Musk and Trump Bullish on New Tech Beyond AI - Ad

Elon Musk is heavily invested in a cutting-edge new technology. In fact, Musk has turned the new president on to this breakthrough. And President Trump could make an announcement any day that could spike the price of stocks in this sector.

Nvidia Says DeepSeek An 'Illustration' Of How New AI Models Can Be Created While Being Export-Control Compliant Amid $600 Billion Market Value Plunge

Nvidia Corp. has thrown its support behind China's DeepSeek R1 artificial intelligence model, calling it "an excellent AI advancement" even as the startup's emergence triggered a historic $600 billion plunge in the chipmaker's market value on Monday.

Dan Ives Expects Meta And Microsoft To Stand Firm On $60 - $80 Billion AI Spending Plans Amid DeepSeek's Disruptive AI Model

Wedbush Securities analyst Dan Ives expects Meta Platforms Inc. and Microsoft Corp. to stand firm on their ambitious artificial intelligence spending plans during their upcoming earnings calls, despite recent market jitters over Chinese AI startup DeepSeek's emergence.

Legendary Wall Street Stock Picker Names No.1 AI Stock of 2025 - Ad

Marc Chaikin's system has detected another bewildering trend in the U.S. stock market. And he says this stock could shoot sky-high in the new year as a direct result. To hear it for yourself, click here. You'll get this stock's name and ticker symbol, absolutely free.

Elon Musk's Tesla Records $600 Million In Paper Gains On Bitcoin In Q4 Thanks To New Accounting Rule

Electric vehicle behemoth Tesla Inc. (NASDAQ:TSLA) reported an unrealized gain of $600 million on its cryptocurrency holdings in the fourth quarter.

Three Companies Could Benefit Greatly From AI's Next Boom This Year - Ad

My 2025 AI Blueprint features three of what I call Nvidia's "Silent Partners." Some of the world's hottest companies are working with AI's undisputed leader, Nvidia. And I've identified three of them that appear to be well-positioned for the next AI boom in 2025. Everything you need to know about them in my 2025 AI Blueprint.

How DeepSeek's Breakthrough Is Changing The Landscape For Multi-Industrials

BofA Securities analyst Andrew Obin sees potential growth for multi-industrial stocks like Vertiv Holdings and Eaton Corporation amid the rise of more efficient AI technologies.

My TOP Altcoin for Right Now Is... - Ad

Searching for the top investment opportunity in crypto? Look no further. Our $3 report gives you the full scoop. You'll get this exciting token's name, our recommended investment strategy, and growth projections. Time is of the essence with this one...

Conservative Influencer Says Musk Is Father of Her Newborn Child

Conservative influencer Ashley St. Clair has declared that Elon Musk is the father of her newborn child.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright markethundred.com
Privacy Policy | Terms of Service