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Rising interest rates cause turmoil in the markets

2021-03-05T19:23:15.328Z


The price of US government bonds is rising with expectations that inflation and growth will return. After having climbed, practically in a straight line for a year, stimulated by the massive stimulus plans deployed by states and central banks all over the planet, Wall Street seems seized by doubt. The Standard & Poor's 500, the benchmark index for professionals, is down more than 3% over one month. The Nasdaq, which had literally soared, driven by the excellent health of the tech giants, plunged


After having climbed, practically in a straight line for a year, stimulated by the massive stimulus plans deployed by states and central banks all over the planet, Wall Street seems seized by doubt.

The Standard & Poor's 500, the benchmark index for professionals, is down more than 3% over one month.

The Nasdaq, which had literally soared, driven by the excellent health of the tech giants, plunged nearly 8.5% over the same period.

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The sharp rise in the rate on 10-year US government bonds, fueled by expectations of renewed inflation and growth, dampened investor optimism.

The price of

treasuries

has jumped more than 50% in just a few weeks, from less than 1% in January, to a peak of almost 1.6% in recent days.

After a brief lull at the start of the week, concern resurfaced on Thursday with the speech given by Jerome Powell, the head of the US Federal Reserve (Fed).

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Source: lefigaro

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