Chasing Yields

In addition to this week’s ADP private-sector employment report for January, traders will be closely monitoring an announcement from the Treasury Department regarding the potential increase in future auction sizes, particularly for long-term borrowing.

This week, the Federal Reserve Committee elected to keep the Fed Funds Rate the same. Chairman Powell indicated there was broad approval from the Board to leave rates neutral.

As the new year unfolds, investors face a dizzying array of choices. The AI boom continues to dominate headlines. Cryptocurrencies promise revolutionary returns.

Job Openings and Labor Turnover Survey (JOLTS) numbers were released this week from the Bureau of Labor Statistics indicating that there were 7.15 million jobs opened at the end of November.

Treasuries edged lower today after the Bureau of Labor Statistics announced October and November job reports.

While investors wait for the results of the FOMC meeting and an anticipated cut, the bond market is keeping an eye on the bigger picture.

Traders are very optimistic that the Federal Reserve Committee will cut interest rates at its upcoming policy meeting on December 10th.

Investors have notably increased their investments in artificial intelligence stocks this year, capitalizing on the surge in AI-related sectors and the market’s recent highs, resulting in record levels of investment.

Last week, regional bank stocks took a hit as two US banks reported trouble with bad loans—Zions Bancorp in Utah and Western Alliance in AZ.

After a relatively drama-free stock market for the last several months, the new standoff between the US and China has escalated investors’ fears to a heightened level.

With the price of an ounce of gold reaching record-breaking new highs, currently $ 4,070 as I write, it remains the primary safe-haven asset, along with the dollar.