Saturday,
October 2, 2021
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Top Story
The Week in Review
Treasury yields were a force in the markets this week. The Treasury yield means the return on investment on the US governmentās debt obligations. In other words, the Treasury yield is the effective interest rate which the US government pays to borrow money for different lengths of time. When Treasury yields rise, tech stocks tend to drop.
The Federal Reserve recently announced that it plans to reduce its monthly $120 billion bond purchases as soon as November. The central bank also signaled that it may raise interest rates at some point next year, causing Treasury yields to hit the highest levels seen in months on Tuesday.
Meanwhile, the House and Senate approved a short-term appropriations bill on Thursday which is expected to prevent a government shutdown, at least until December 3. A shutdown would have caused the suspension of many government services and could have led to federal workers being furloughed, which would have hampered economic recovery. But lawmakers still have another challenge on their hands: they will need to agree on how to raise or suspend the debt ceiling before October 18 to prevent the possibility of the US defaulting on its debt.
On the economic data front, the CBOE Volatility Index, also known as Wall Streetās fear gauge, spiked about 27% Additionally, the Consumer Confidence Index fell to 109.3 in September from 115.2 in August. Analysts expect that this drop will translate to lower consumer spending.
For more economic news and how it affects your money, visit the SoFi app.
New Episode of The Important Part: Investing with Liz Young
Reading Barronās or the Wall Street Journal every week is a smart idea. You can enhance those smarts by keeping your eyes and ears open to what people in your everyday life have to say about the markets and economy. On todayās episode, Jason Trennert, Chairman and CEO of Strategas Research Partners, discusses why investors should talk to their taxi driver, sales clerks, or even the bartender at their local watering hole to gather data points and pick up on themes thatāll shape markets until the next crisis. Plus, Liz offers her take on specific ways in which you can incorporate the human element and simplify your investing strategy.
Subscribe now on Spotify, Apple, or wherever you get your podcasts to hear episodes every month.
