The US stocks are opening with gains. Markets are shrugging off the assassination attempt and at the same time, increasing former Pres. Trumps odds at being elected President. That implies a softer Fed (new Fed Chair?), less regulation, lower taxes. The negative is less immigration and deportation of illegal immigrants, and higher tariffs. That may lead to higher deficits/higher inflation. That has the yield curve steepening.
The snapshot of the market five minutes into the open is showing:
Dow industrial average +241 points or 0.61% at 40245. The record high close is 40003.60.S&P index +25.59 points or 0.45% at 5641.01NASDAQ +94 points or 0.51% at 18493.
The small-cap Russell 2000 is up 13.83 points or 0.64% at 2162.20.
Looking at some of the major large-cap stocks:
Meta Platforms -0.12% Amazon -0.05%Nvidia +0.58%Alphabet lesson 0.85%Apple +1.88%Microsoft +0.39%Tesla +5.13%
In the US debt market, yields are higher/the yield curve is steepening (although 2-10 years spread is still negative):
2-year yield 4.447%, -1.3 basis points.5-year yield 4.116%, +0.5 basis points.10 year yield 4.213%, +2.7 basis points.30-year yield 4.445%, +4.4 basis points
This article was written by Greg Michalowski at www.forexlive.com.
