Look closer, and Wall Street’s rally is showing cracks

Wall Street's rally appears to be showing cracks beneath its surface. Major stock indexes are hovering near record levels, but are being propped up by a few key areas, such as technology and AI-linked stocks, according to The Economic Times. Despite this, the market is straining under the weight of elevated oil prices, rising Treasury yields, and a Federal Reserve that is bracing for additional interest-rate hikes, as noted by MarketWatch.

The 30-year Treasury yield recently reached its highest level in over 20 years, and the benchmark 10-year yield rose well above the 5% threshold. This has led to concerns about the potential for a sharper trajectory of interest rate hikes, which could undermine the US stock market's rally. Investors are eagerly awaiting upcoming reports on employment and inflation, which will provide insight into the Federal Reserve's future actions.

A busy week of economic updates lies ahead, with reports on inflation, the jobs market, and consumer confidence due. The monthly employment report, due on October 2, will be a key event for Wall Street, along with a key inflation gauge. These reports will be closely watched for implications for the Federal Reserve and its interest rate policy.

Brief written by urgent.news from MarketWatch, New Straits Times, Winnipeg Free Press, The Economic Times - Top News — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.