US stocks fall as investors mull how stimulus will impact inflation

SourceBusiness Insider
SectorFinancial Markets
CountryMiddle east

US stocks fell Monday morning as investors remained cautious that a large federal stimulus, coupled with surging commodity prices and rising government bond yields could lead to a rise in inflation, just as the world economy is starting to bounce back from the coronavirus pandemic.  The yield on the benchmark 10-year US Treasury note is around 1.37%, its highest in a year, having doubled in the space of six months. "Near-term Treasury bond prices are likely to remain under pressure as yields rise in anticipation of the economic re-openings that lie ahead. That said, in our experience the bond market has been known to project its expectations for inflation well beyond levels that are justified by the trends in the actual inflation rate," said John Stoltzfus Oppenheimer Asset Management chief investment strategist.  US lawmakers will debate on President Joe Biden's proposed $1.9 trillion American Rescue Plan act this week. Also, Federal Reserve chairman Jerome Powell will deliver testimony to the Senate Banking and House...read more...