Sharechat Logo

27th May 2021 Morning Report

Thursday 27th May 2021

Text too small?

U.S. stocks closed with modest gains on the back of comments from Federal Reserve officials that helped dampen concerns about runaway inflation which kept bond yields in check. The 10-year U.S. Treasury traded below the 1.6% level. Tech stocks were among the top performers. These have struggled in recent weeks as bond yields advanced due to rising inflation worries. Such stocks’ future cash flows are discounted at higher rates are particularly sensitive to rising or falling interest rates.

A number of Fed officials have commented in recent days on inflation, maintaining that inflation is transitory and that the bank has the tools slow it down if it begins to run too hot. However, they have indicated that they are closer to starting the debate about tapering, or reducing, its massive fiscal stimulus plan.

Some commentators are sensing that Federal Reserve officials are giving a choreographed message that things are improving, and that they can at least start talking about talking about tightening.

Morning Report 27 May 2021


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

March 28th Morning Report
March 27th Morning Report
March 26th Morning Report
March 25th Morning Report
March 21st Morning Report
March 19th Morning Report
March 18th Morning Report
March 14th Morning Report
March 12th Morning Report
March 11th Morning Report