Stocks, Treasurys pause inflation-fueled selloff: Markets Wrap
Published On Jan 8, 2025, 3:45 AM
In a market pause following a selloff driven by inflation fears, US equity futures rose slightly after a significant decline in tech stocks, particularly the Nasdaq 100. Traders are debating the sustainability of recent selloff trends amidst indications of persistent inflation. Market analysts caution against further falls in risky assets since that could lead to increased demand for safe-haven assets like Treasuries. European markets showed a positive trend, with expectations for better performance in 2025 due to improving economic conditions and reduced political uncertainty. Meanwhile, concerns over potential US tariffs have negatively impacted Asian markets, especially in China.
Stock Forecasts
TLT
Positive
Investors should consider positioning in the US Treasury market as yields stabilize, coupled with potential selloffs in riskier equities, which could drive the demand for safe-haven assets like Treasuries.
QQQ
Negative
Given the uncertainty and negative sentiment in risk assets, particularly tech stocks, investors should be cautious about the sector and may want to consider a bearish stance.
Related News
Faisal Islam: Soaring UK borrowing costs are a problem for Rachel Reeves
Jan 7, 2025, 12:26 PM
The Chancellor may face the prospect of breaking her own Budget rules
Why it's time to tweak your investments after lofty stock returns in 2024
Jan 3, 2025, 12:44 PM
Investors may need to tweak their portfolio holdings following a 23% gain in the S&P 500 index in 2024.
Trump eases up on China
Jan 3, 2025, 6:00 AM
Trump now opposes the TikTok ban he once tried to enact and is softening on China in other ways.