By Howard Schneider WASHINGTON (Reuters) – Within weeks of Donald Trump’s 2016 election, U.S. Federal Reserve policymakers began mulling the impact of expected tax cuts and tariffs on the economy, penciling in rough estimates of what was to come, with some among them concluding higher interest rates may be needed to keep inflation in check. That included Jerome Powell, then a Fed governor and now the central bank’s chair with chief responsibility for setting the course of monetary policy through the first 16 months of Trump’s next term. The Republican former president defeated Democratic Vice President Kamala Harris in last…
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U.S. Treasury yields were slightly lower on Monday following last week’s post-election high prompted by Donald Trump’s presidential win.The 10-year Treasury yield fell by less than one basis point to 4.3062%. The yield on the 2-year Treasury was also lower by less than one basis point to 4.2519%.One basis point equals 0.01%. Yields and prices move in opposite directions.Investors are awaiting the latest inflation reading due on Wednesday as well as the consumer and producer prices data for October set to be published later this week. The consumer data will provide insights about the health of the U.S. economy.The October CPI is expected…
Investing.com — US equity positioning and valuations are looking increasingly stretched, according to RBC Capital Markets. In a report released Monday (NASDAQ:), RBC underlines that positioning in equity futures for both the and the recently reached peak levels. As the market rides post-election optimism, the investment bank suggests there may be limits to how much further valuations can expand. “US equity positioning in the futures market – including S&P 500 contracts – was at all-time highs on election day per CFTC’s Friday update,” the report notes. On the valuation front, the S&P 500’s equal-weight forward price-to-earnings (P/E) ratio has climbed…
The Economics of the Stock Market. 2022. Andrew Smithers. Oxford University Press. Judging by the behavior of the stock market, we are living in challenging times for mainstream finance. Under the hypothesis that markets are efficient and investors are rational, neoclassical theory assumes away the problem of financial bubbles and the linkages between equity returns and the rest of the macro variables. After a decade of unconventional monetary policies, massive fiscal deficits, and the return of inflation, however, equity market behavior in recent years has been nothing short of perplexing, leaving most practitioners struggling to understand the vagaries of stock…
As temperatures dip in the winter, energy demand predictably rises. Consumers and businesses turn up heating systems, putting an extra load on electricity and natural gas utilities. This seasonal surge often benefits energy companies, with utilities seeing increased revenue and stability as they serve higher demand. Among top choices, Duke Energy Corporation (DUK) stands out due to its extensive service footprint and strong fundamentals, particularly for investors seeking stability and dividends in the winter season. The Charlotte-based energy giant Duke Energy supplies electricity and natural gas across the Midwest and Southeast, servicing 8.4 million electric and 1.7 million gas customers.…
Image source: Getty Images I’ve got cash to burn in my Stocks and Shares ISA right now and Palantir (NYSE: PLTR) stock has caught my eye. An artificial intelligence (AI) play, it’s one of the hottest stocks in the market at the moment. Is it worth buying a few shares in the data analytics company for my portfolio today? Let’s discuss. . An AI stock I’ve actually had this US-listed growth stock on my watchlist for a few years now. And I’ve covered it a few times here at The Motley Fool. In the past, I’ve been impressed with the…
Dogecoin (DOGE), the largest memecoin by market capitalization, has rallied more than 23% in the past 24 hours, emerging as the best crypto market performer amid anticipation surrounding Elon Musk’s support of the memecoin in the Trump administration. Currently trading at $0.2771, DOGE has reached its highest value since Oct. 2021, marking an 86% climb over the last seven days and is up 152% over the last month.DOGE/USD daily chart. Source: TradingViewDOGE now commands a market capitalization of over $41.2 billion at the time of publication, surpassing USDC’s (USDC) $36.9 billion and XRP’s (XRP) $32.7 billion capitalization to become the sixth-largest…
TAIPEI (Reuters) – There is no new “stage of talks” with the United States at the moment for arms sales, Taiwan’s government said on Monday (NASDAQ:), as the island considers how best to respond to U.S. President-elect Donald Trump’s previous demands that Taipei pay for protection. Trump, who won a second term as president last week, unnerved democratically governed Taiwan, which is claimed by China, by saying it should pay the U.S. for its defence and that it had taken away semiconductor business from America. Trump has not elaborated on what he means by Taiwan having to pay for its…
Image source: Getty Images With many FTSE 100 companies drawing revenue from abroad, the US election could have a significant impact on UK shares. With Trump and the Republican Party soon to be back in power, I’m looking to see which of our local stocks could benefit. Markets are already pricing in higher inflation, which could keep interest rates up, suppressing bonds and non-interest-earning commodities like metals. But since Trump has been favourable regarding company tax in the past, many US stocks have already enjoyed a boost. Other policies related to infrastructure and defence may also help UK-based companies. Here…
These billionaire technology leaders are going nuclear. What do Jeff Bezos, Bill Gates, and Sam Altman have in common? The easy answer is that they’ve all led technologically innovative companies. Bezos, of course, founded Amazon. Gates co-founded Microsoft. Altman is CEO and co-founder of OpenAI. All three men are also billionaires. Bezos is the wealthiest of the group with a net worth of around $226 billion. Gates has given away much of his fortune but is still worth over $105 billion. Altman is barely in the club with a net worth of $1 billion. But there’s another common denominator between…