WallStreet

The U.S. bond market remains under pressure as long-term yields hover near their yearly highs, driven by concerns over Donald Trump’s newly proposed tax plan. With a potential to add $4 trillion to the national deficit, the proposal is sending shockwaves through financial markets — and well beyond Washington.

Bond Market: Higher Yields, Higher Uncertainty
Although the tax legislation still awaits Senate approval, investors reacted swiftly. To compensate for increased fiscal risk, bondholders are now demanding higher yields. Ten- and thirty-year U.S. Treasury yields remain above 4.5% — a level that raises borrowing costs across the board, from mortgages to corporate loans.

Moody’s Downgrade Highlights Mounting Deficit Concerns
Credit rating agency Moody’s downgraded the U.S. credit outlook last week, a clear sign that confidence in America’s fiscal management is eroding. Analysts warn that a surge in debt issuance could spark inflationary pressure or drive investors to safer havens.
“The market understands: a growing deficit means more debt issuance, and that equals risk,” said Thierry Wizman of Macquarie.

Fed Remains Independent – For Now
Amid political and economic uncertainty, one reassuring development emerged — the U.S. Supreme Court ruled that members of the Federal Reserve’s Board of Governors cannot be arbitrarily removed, effectively shielding Fed Chair Jerome Powell from political interference. Investors see this as a stabilizing factor for monetary policy.

Households and Businesses: Who Will Feel the Pain?
Rising bond yields aren’t just a Wall Street concern — they directly impact everyday Americans. Mortgages, student loans, business financing — all become more expensive if the government keeps increasing its debt without a sustainable fiscal plan.

Stock Market Treads Carefully
Equity indexes responded cautiously on Friday:

🔸 Dow Jones fell by 0.04%

🔸 Nasdaq dropped 0.09%

🔸 S&P 500 was flat

This stagnation follows a week of declines, with investors worried that elevated yields could stall economic growth.

Summary
🔹 U.S. bond yields remain high amid Trump’s tax proposal

🔹 Moody’s downgraded the U.S. over rising deficit concerns

🔹 The Fed gains judicial protection from political interference

🔹 Higher yields mean costlier debt for households and businesses

🔹 Wall Street is cautious as fiscal anxiety spreads

#TRUMP , #USPolitics , #tax , #WallStreet , #worldnews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Відомий хедж-фондовий інвестор, чиє ім’я асоціюється з успішними стратегіями на Уолл-стріт, нещодавно привернув увагу фінансових ринків, назвавши популярну інвестиційну стратегію «абсурдною». За його словами, ця стратегія, яка здобула популярність серед роздрібних інвесторів завдяки соціальним мережам, базується на хибних припущеннях і не витримує критики в умовах волатильного ринку.
Ветеран не лише розкритикував підхід, але й зробив сміливий крок, відкривши значну шорт-позицію проти активів, пов’язаних із цією стратегією. Його дії викликали жваві дискусії серед аналітиків: одні вважають це сигналом до корекції ринку, інші — ризикованим кроком, враховуючи підтримку стратегії з боку роздрібних трейдерів.
Цей випадок підкреслює зростаючу напругу між традиційними інвесторами та новими ринковими трендами, які часто формуються онлайн-спільнотами. Чи стане шорт-позиція ветерана вдалим ходом, покаже час, але вона вже вплинула на ринкові настрої.
Слідкуйте за оновленнями фінансових ринків! Підписуйтесь на #MiningUpdates щоб бути в курсі найактуальніших новин.
#HedgeFunds #ShortSelling #InvestmentStrategy #WallStreet #MarketTrends #FinanceNews #MiningUpdates

#WallStreet is eyeing significant upside for Strategy's stock as its #bitcoin reserves near 500,000 BTC. According to recent reports, Strategy has fully embraced its position as a bitcoin treasury company, and this move is being met with bullish sentiment from Wall Street. The company's year-to-date BTC #yield of 74.3% is a measure it uses to assess the performance of its bitcoin strategy, and it has bested its previous high of 47.3% in 2021.

The news of Strategy's growing bitcoin reserves has sparked interest among investors, with many institutional holders increasing their stakes in the company. The number of institutional holders with at least $100 million AUM has jumped significantly, and the total reported value of these holdings has reached $15.3 billion. This influx of investment is a testament to the growing confidence in Strategy's ability to navigate the cryptocurrency #market and capitalize on the potential upside of bitcoin.

As the cryptocurrency market continues to evolve, it will be interesting to see how Strategy's stock performs in relation to the price of bitcoin. With US spot Bitcoin #ETF s surpassing 500,000 BTC in cumulative net inflows and BlackRock's spot ETF approaching the $50 billion AUM mark, there are certainly opportunities for growth and investment in the space. However, there are also potential risks to consider, such as profit-taking and significant sell walls that can hinder rallies. As we move forward into 2025, it will be important for investors to stay informed and adapt to changing market conditions in order to make informed decisions about their investments in Strategy and other cryptocurrency-related assets.
$BTC

Wall Street’s fear gauge, the Vix, hits a near four-year low, reflecting investor confidence in the Federal Reserve’s inflation control.The Vix’s drop to 12.4 from over 20 in October suggests reduced market volatility and aligns with the S&P 500’s best month since July 2022.Analysts caution that the current market calm might lead to future instability, with expectations of increased volatility ahead.
In a significant financial development, Wall Street’s “fear gauge,” the Vix, has recently seen a dramatic fall to near four-year lows, signaling a major shift in investor sentiment.
This decline in the Vix, which measures expected volatility in the S&P 500 index, reflects growing investor confidence that the Federal Reserve can successfully curb inflation without triggering a recession.
This newfound optimism is a stark contrast to the heightened concerns that dominated financial markets in the latter part of the previous year.
The Vix Indicator and Investor Confidence
The Vix, which often referred to as Wall Street’s fear gauge, plunged to 12.4 this week, marking its lowest point since November 2019. This drop from over 20 in late October signifies a substantial shift in market outlook.
The gauge ended the week slightly higher at 12.6 but still represents a significant decrease in market volatility expectations. This decrease coincides with the S&P 500 index recording its best month since July 2022, buoyed by a greater-than-anticipated fall in US inflation to 3.2% in October.
Investors’ rising optimism is underpinned by a belief that the Federal Reserve will start reducing interest rates in early 2024. Jim Tierney, head of US growth investments at AllianceBernstein, encapsulated this sentiment, noting a growing confidence in the Federal Reserve’s ability to achieve a ‘soft landing’ for the economy.
Risks in Tranquil Markets
Despite the apparent tranquility in the markets, analysts caution against complacency. Historically, calm markets can breed instability as investors increase their equity holdings and leverage.
This concern is echoed in the prices of long-term options contracts, which suggest that this period of low volatility might be short-lived, with expectations of higher volatility in the coming year and beyond.
The JPMorgan team of US equity and quantitative strategists pointed out that the current low volatility is unusual given the backdrop of high interest rates, weakening economic data, and heightened geopolitical tensions.
They attributed this anomaly to a delayed impact of rising rates on economic growth and a surge in popularity of short-dated stock options, which the Vix doesn’t capture.
Moreover, the market is yet to fully appreciate the risks associated with the shift from 15 years of ultra-low interest rates. These risks include potential impacts on commercial real estate, rising bankruptcies, and credit delinquencies.
JPMorgan analysts warn of ‘unknown unknowns’ that could emerge as the economic environment continues to evolve. The recent dive in Wall Street’s fear gauge highlights a complex scenario in the financial markets.
On one hand, there is growing optimism about the Federal Reserve’s handling of inflation and its ability to prevent an economic downturn. On the other, there are underlying risks and uncertainties that could disrupt this calm. Investors and analysts alike are keeping a watchful eye on various economic indicators to gauge the future trajectory of the market.
As the Federal Reserve continues its delicate balancing act, the financial markets are poised at a critical juncture, with potential implications for both short-term trading and long-term economic stability.
#wallstreet $BTC