Oddbean

Rising yields put some pressure on equities ========== Rising yields have put pressure on equities, with US stocks at the lows of the day. As oil prices have climbed, so have yields, causing stocks to take notice. The S&P 500 is down 13 points to 5284 from a high of 5305. There is also skepticism about growth, with some money managers arguing for ongoing durability in the US economy. Fed funds futures pricing is down to 45 bps this year, reflecting the strengthening wealth effect from stock markets. The energy market, particularly WTI crude and July natural gas, is also impacting equities. WTI crude is up 1% and flirting with $80, while July natural gas is near $2.75 as US production falls. Oil prices have quickly turned around on signs that OPEC+ will extend its production agreement. The meeting was moved to virtual, suggesting it's a rubber stamp. Goldman Sachs predicts Q2 GDP growth of 3.2%, while the Atlanta Fed predicts 3.6%. Fed pricing may move from two rate cuts to three next. The article also includes various advertisements and links to other content. #Equities #Yields #Stocks #OilPrices #GdpGrowth #FedFundsFutures #Opec+ https://www.forexlive.com/news/rising-yields-put-some-pressure-on-equities-20240517/