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.

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