Fiscal Spending Steepens Yield Curve
Higher inflation and a steeper yield curve from fiscal spending will positively impact financial stocks.
Too little corroboration in the last 3 days to call a trend (6 articles). Watching for it to gain traction.
"The equity market is currently enjoying the 'sweet spot' of the curve. A 'modestly upward sloping yield curve,' in which the 10-year is as much 1.5 percentage points higher than the 2-year, provides some of the largest and consistent gains for the S&P 500, with average annual returns of roughly 11%."
"Stocks also have support as a plunge in crude oil prices eases inflation fears and pushes bond yields lower. Crude prices gave up an overnight advance and turned sharply lower as the prospect of a deal between the US and Iran appears to be gaining traction."
"Gupta believes higher interest rates would not necessarily destroy the stock market's long-term uptrend. Her argument is that the US economy appears strong enough to handle higher borrowing costs. Stocks could still perform well if the Federal Reserve raises rates to deal with a structural inflation problem rather than because economic growth is collapsing."
"Stocks rose Tuesday after a report showed U.S. inflation was not as bad last month as economists expected. Stocks got help from easing yields in the bond market, which fell after a report said U.S. consumers had to pay prices for gasoline, food and other costs of living that were 3.5% higher last month than a year earlier. That wasn't as bad as May's 4.2% inflation rate or the 3.9% that economists expected for June."
"Wall Street’s worries about rising inflation have been somewhat muted by the latest round of corporate profit reports. Companies in the S&P 500 have reported profit growth of 28% overall for the most recent quarter, according to FactSet."
"Easing inflation concerns are bullish for stocks after US consumer prices rose less than expected last month."
"Easing inflation concerns are knocking bond yields lower and pushing stocks higher today after US December core consumer prices rose less than expected."
"Analysts said a steepening yield curve following the inflation report could help bank earnings as lenders could borrow cheap and lend at a higher rate."
""...as analysts said a steepening of the yield curve could help bank earnings as lenders could borrow cheap and lend at a higher rate.""
""...analysts said a steepening yield curve could help bank earnings as lenders could borrow cheap and lend at a higher rate.""