Last week ended on a positive note. Improved headlines on the trade front between the US and China and a set of better-than-expected US jobs data helped lift the S&P 500 by 1.5% over the week. The Nasdaq 100 rallied 2% despite a sharp selloff in Tesla shares amid a heated dispute between Donald Trump and Elon Musk.
Friday’s rally was driven largely by a narrative that the US economy remains surprisingly resilient despite trade chaos and geopolitical uncertainty. But the US 2-year yield jumped past the 4% mark on Friday. Don’t bet that the Federal Reserve (Fed) will act as a catalyst for equity bulls. However, a strong auction of 30-year US bonds on Thursday could help ease concerns at the long end of the yield curve – as the 30-year yield opens the week just below the 5% psychological level. More positive trade news could also help sentiment....
