Author: super@dmin

The U.S. junk bond market is making significant gains this week amid surging expectations that the Federal Reserve will cut rates this year.

After an ugly May, the stock market is on track for its best weekly gain since November of 2018, at least partly on the back of hope that the Federal Reserve will soon reduce interest rates to help buoy an economy being buffeted by a tariff battle and sluggish global growth.

In a report dated June 6, Mark Cabana, rates strategist, Joseph Song, U.S. economist, and currency strategist Adarsh Sinha at BAML, say that history offers a clear guide on how interest rate cuts tend to play out in the coming six-month period once the market starts to price in a rate reduction.

Some of the world’s biggest auto makers have seen billions wiped off the value of shares after a disappointing day for the industry.

Credit-card companies are offering more generous dining-oriented rewards.

Reports of Mexico and China trade wars causing Americans financial pain are greatly exaggerated, writes Brett Arends.

Falling bond yields have been a consistent theme for investors in recent months, and one that came to the fore after the rate of return on the 10 year Treasury note fell to a 21-month low this week, while falling roughly 22% this year.

As the U.S.-China trade spat sparks jitters in equity markets from both countries, analysts at Société Générale say the U.S. stock-market will ultimately see the worst of it.

Rates for home loans tumbled again as intensifying market turmoil pushed investors into bonds. Whether would-be home buyers will be able to take advantage is another question.

The market is increasingly salivating at the prospect that the Federal Reserve may make its first interest-rate cut of the cycle, possibly next month.