The relationship between stocks and bonds has been a tight one in recent months, with equities falling as Treasury yields climbed to 16-year highs. Higher yields offer investment competition to stocks while also raising the cost of capital for companies and households.
"The stability in rates is helping other asset classes find a footing," said Jason Draho, head of asset allocation Americas as UBS Global Wealth Management. "If equities move higher you may find investors starting to feel as if they need to chase performance through the end of the year." At the same time, the last two months of the year have tended to be a strong stretch for stocks, with the S&P 500 rising an average of 3%, according to data from CFRA Research. The best two weeks of the year for the index, during which it has risen an average of 2.2% - kicked off on Oct. 22, according to data from Carson Investment Research.
Of course, plenty of investors remain hesitant to return to stocks just yet. Technology bellwether Apple Inc. was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook on Thursday, after the iPhone maker gave a holiday sales forecast that was below Wall Street estimates. At least 14 analysts cut their price targets for the company, according to LSEG data.
Source: News Formal (newsformal.com)
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: AllSidesNow - 🏆 572. / 51 Read more »
Source: latimes - 🏆 11. / 82 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Source: AP - 🏆 728. / 51 Read more »
Source: AP - 🏆 728. / 51 Read more »