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Market move▼ Bearish for Indian equities
Look closer, and Wall Street’s rally is showing cracks
The brief
- Elevated oil prices and rising Treasury yields are straining a Wall Street rally near record highs
- The Federal Reserve is bracing for further pressure, the report says
- Higher oil and US yields can pressure Indian equities, especially rate-sensitive sectors
- Gold’s next leg higher faces hurdle as yields rise, Fed rate-hike bets return
- ETMarkets Smart Talk | Fed tightening returns: Ritesh Nambiar on what it means for Indian bonds and the rupee
- ETMarkets Smart Talk | US bonds offer attractive yields again: Nachiketa Sawrikar on the challenge for Indian equities
- PRECIOUS-Fed tightening bets weigh on gold prices
- Gold drops more than 1% on US rate-hike bets
Rising US Treasury yields and market pressure
US Treasury yields climbed amid sticky inflation, heavy bond issuance and strong economic activity, with the 30-year yield topping 5.53% and the 10-year reaching a 19-year high. Reports warned of pressure on US stocks and investor confidence and capital inflows in India; the Sensex earnings yield minus the US 10-year yield turned negative, its lowest in 14 months.
Monday, 28 September
Sunday, 27 September
- Look closer, and Wall Street’s rally is showing cracks