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Stocks Rebound as Treasury Yields Retreat

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The market endured a heavy sell off throughout August and September after the Fed signalled at its last meeting that another rate rise may be required this year in order to tame stubbornly elevated inflation – a prospect that subsequently triggered a surge in U.S. Treasury yields.

After a two-month sledding the U.S. benchmark index rebounded this week as policymakers at the Federal Reserve are becoming optimistic that the recent rise in Treasury yields could finally put an end to the historic interest rate hikes over the past 19 months.

Given the shift in tone in recent days from Fed members investors are also becoming increasingly hopeful that there won’t be further tightening of monetary policy. According to the CME FedWatch Tool the odds of another interest rate hike by the Fed in November are falling.

Financial markets currently see a nearly 90% chance the U.S. central bank will keep rates unchanged at its next policy meeting to be held on the 1 st of November. A month ago, those odds were at 57%. The majority of traders are betting that there will be no more hikes and that the Fed will hold rates steady through Q2 2024, before loosening policy.

A graph of stock market

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Source: TradingView, S&P 500 Index

The latest rally was driven in part by dovish statements from Federal Reserve officials, who said that the recent spike in U.S. Treasury yields to 16-year highs could lessen the need for the central bank to hike borrowing costs further in the short term. However, with the prospects of the U.S. falling into a mild recession in 2024, the index may face a choppy rise.

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

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Violeta Todorova

Senior Research

Violeta è entrata a far parte di Leverage Shares nel settembre 2022. È responsabile dello svolgimento di analisi tecniche e ricerche macroeconomiche ed azionarie, fornendo pregiate informazioni per aiutare a definire le strategie di investimento per i clienti.

Prima di cominciare con LS, Violeta ha lavorato presso diverse società di investimento di alto profilo in Australia, come Tollhurst e Morgans Financial, dove ha trascorso gli ultimi 12 anni della sua carriera.

Violeta è un tecnico di mercato certificato dall’Australian Technical Analysts Association e ha conseguito un diploma post-laurea in finanza applicata e investimenti presso Kaplan Professional (FINSIA), Australia, dove è stata docente per diversi anni.

Julian Manoilov

Marketing Lead

Julian è entrato a far parte di Leverage Shares nel 2018 come parte della prima espansione della società in Europa orientale. È responsabile della progettazione di strategie di marketing e della promozione della notorietà del marchio.

Oktay Kavrak

Head of Communications and Strategy

Oktay è entrato a far parte di Leverage Shares alla fine del 2019. È responsabile della crescita aziendale, mantenendo relazioni chiave e sviluppando attività di vendita nei mercati di lingua inglese.

È entrato in LS da UniCredit, dove è stato responsabile delle relazioni aziendali per le multinazionali. La sua precedente esperienza è in finanza aziendale e amministrazione di fondi in società come IBM Bulgaria e DeGiro / FundShare.

Oktay ha conseguito una laurea in Finanza e contabilità ed un certificato post-laurea in Imprenditoria presso il Babson College. Ha ottenuto anche la certificazione CFA.

Sandeep Rao

Research
Sandeep è entrato a far parte di Leverage Shares nel settembre 2020. È responsabile della ricerca sulle linee di prodotto esistenti e nuove, su asset class e strategie, con particolare riguardo all’analisi degli eventi attuali ed i loro sviluppi. Sandeep ha una lunga esperienza nei mercati finanziari. Iniziata in un hedge fund di Chicago come ingegnere finanziario, la sua carriera è proseguita in numerose società ed organizzazioni, nel corso di 8 anni – da Barclays (Capital’s Prime Services Division) al più recente Index Research Team di Nasdaq. Sandeep detiene un M.S. in Finanza ed un MBA all’Illinois Institute of Technology di Chicago.

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