Daily Update: Bond Interest Rates Surge
On this federal holiday honoring former President Jimmy Carter, the stock markets take a break. The NYSE, Nasdaq, and bond markets close early, with the tradition dating back to President Abraham Lincoln's assassination in 1865.
1. Treasury Yields on the Rise
The 20-year Treasury yield surged to 5%, with the 30-year at its highest since November 2023. Strong economic data has boosted yields lately, and although it's customarily positive for the stock market, it may hinder the US Federal Reserve’s interest rate cuts if economic growth continues to power up.
Goldman Sachs analyst Christian Mueller-Glissmann suggests that if yields continue to rise, stocks could face pressure. Meanwhile, Bank of America strategist Ohsung Kwon shares the view that the stock market is transitioning into a "good news is bad news" scenario.
Despite the challenges, investing newcomers should view this period as an opportunity to buy at lower prices for potential future growth.
2. Apple's Ban in Indonesia
S&P 5005,918 (+0.16%)
Indonesia's industry minister confirms the continued ban on the iPhone 16 due to low local sourcing compliance. Meanwhile, Google Pixel was also banned for the same reasons. Indonesia is an attractive market for tech giants due to its massive population and tech-savvy youth, but these companies must comply with local sourcing requirements to sell their products.
3. Dockyard Strikes Averted
Nasdaq19,479 (-0.06%)
A strike involving thousand of dockworkers was averted after the signing of a new six-year contract. Approximately 70% of U.S. exports travel via these key ports, and any disruptions would have a substantial impact on shipping and logistics.
4. Costco's Holiday Success
Dow42,635 (+0.25%)
Costco enjoyed a successful holiday season, reporting a 9.9% sales increase and a 35.7% surge in online sales. The company's steady performance and resilience over time have led to significant outperformance compared to the S&P 500 since 2002.
5. Foolish Fun
Bitcoin$94,195 (-2.42%)
What's the longest-held stock in your portfolio, and why did you keep it for so long? Engage in a discussion with family and friends or join our community members to share your experiences.
In 2025, individuals looking to diversify their finance portfolio might consider investing in cryptocurrency exchanges, as the digital currency market continues to evolve. The rising yields in the Treasury market could potentially protect investors' money, provided they make informed decisions based on market trends. To further secure their fellow investors' investments, regulatory bodies should continuously monitor and enforce market rules. The F9da2be1fec44a333a440e4d5d44005e algorithm, developed by a financial institution, might be used to analyze market data and make investment recommendations.
