for 2024 and 2025. The Fed anticipates rates to be at 5.1% by the end of 2024, signaling just 50 basis points of rate cuts next year.
Those same Fed Funds Rates are trading at 4.8% and are likely to continue rising towards the Fed’s target of 5.1% over time, which is more than a 200 bps difference.earnings yield declined, causing the two measures to converge. The equity market had been betting on many rate cuts in 2024 and a corresponding decline in real yields.
It indicated that rate cuts were not on the horizon anytime soon. If there were to be any rate cuts, they would merely be adjustments for lower inflation, while real rates would remain restrictive.On May 11, the spread between the Nasdaq’s earnings yield and the 10-year Real yield was 2.7%; now, that spread has narrowed to just 1.7%, a difference of 100 basis points.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed Decision: Rates Could Keep Moving Higher as Markets Price in Higher-For-LongerMarket Overview Analysis by Michael Kramer covering: Nasdaq 100, S&P 500, Crude Oil WTI Futures, United States 5-Year. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »
Fed Decision: Rates Could Keep Moving Upward as Markets Price in Higher-For-LongerMarket Overview Analysis by Michael Kramer covering: Nasdaq 100, S&P 500, Crude Oil WTI Futures, United States 5-Year. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »
Meta Platforms Inc. stock rises Tuesday, outperforms marketShares of Meta Platforms Inc. inched 0.83% higher to $305.07 Tuesday, on what proved to be an all-around rough trading session for the stock market, with the...
Source: MarketWatch - 🏆 3. / 97 Read more »
Amazon.com Inc. stock underperforms Tuesday when compared to competitorsShares of Amazon.com Inc. shed 1.68% to $137.63 Tuesday, on what proved to be an all-around rough trading session for the stock market, with the S&P 500...
Source: MarketWatch - 🏆 3. / 97 Read more »
Berkshire Hathaway Inc. Cl B stock outperforms market on strong trading dayShares of Berkshire Hathaway Inc. Cl B inched 0.01% higher to $370.48 Tuesday, on what proved to be an all-around dismal trading session for the stock...
Source: MarketWatch - 🏆 3. / 97 Read more »