US stock rise for the most in nearly a month
After the U.S. stock market closed on Wednesday (9/7), the three major indexes all recorded their largest gains in nearly a month, and the Nasdaq ended its longest losing streak since 2016.
$S&P 500(.SPX)$
Risk assets took another hit, with the U.S. benchmark real yield jumping to its highest level since 2019. The U.S. 10-year inflation-protected bond yield rose 15 basis points to 0.87 percent on Tuesday, up nearly 2 percent this year, the fastest gain on record. Many people view real yields as a measure of real borrowing costs. Rising real yields put pressure on asset valuations because future returns on those assets must be discounted at higher rates.
U.S. investors should expect a sharp decline in guidance and an increase in defaults on non-investment-grade corporate loans, said Bruce Richards, chairman and chief executive of Marathon Asset Management. Since the beginning of this year, under the multiple unfavorable factors such as the Fed's interest rate hike and the surge in energy prices, the strong performance seems to be a "life-saving straw" for the rise of US stocks.
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