Frazzled U.S. stock investors eye frothy Treasury market as Fed looms

NEW YORK - Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc possibly setting the course for stocks and bonds the rest of the year.

Investors worry that yields could rise further if the Fed reinforces its hawkish message at the central bank's Nov. 1 monetary policy meeting. Strong U.S. employment data next Friday could also be a catalyst for yields to rise if it bolsters the case for keeping rates elevated to cool the economy and prevent inflation from rebounding.

Investors are playing a "waiting game of how much does each economic data point need to increase to put another rate hike back on the table," said Alex McGrath, chief investment officer for NorthEnd Private Wealth.With U.S. Gross Domestic Product growth at a sizzling 4.9% in the third quarter, signs that the labor market remains too hot, or the Fed sees the need for further tightening to control inflation, could fuel further volatility.

Investors are also awaiting Apple's results on Thursday, during an earnings season with disappointments from some growth and technology giants, including Tesla and Google. The tech-heavy Nasdaq 100 index is down 11% from its high, though still up nearly 30% on the year.A stock market rebound would follow seasonal trends, said Stovall, of CFRA Research. Since 1945, the S&P 500 has advanced by an average of 1.5% in November, making it the year's third-best performing month, he said.

Stocks appear "oversold" according to technical indicators and could rally if economic data comes in as expected, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research.Your TFSA can be taxed, but it likely won't be if you hold a small position in Royal Bank of Canada stock. The post Think Your TFSA Won’t Be Taxed? Think Again appeared first on The Motley Fool Canada.

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.

Stocks, Treasury yields retreat amid mixed earnings, economic dataKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Analysis-Soaring Treasury yields threaten long-term performance of US stocksSoaring U.S. Treasury yields are further boosting the appeal of bonds over stocks, deepening an already painful equity selloff while threatening to weigh on ...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Analysis-Soaring Treasury yields threaten long-term performance of US stocksExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »