CNBC's "Fast Money" Rate Rip Higher… And A Middle Market Pulse Check 1/8/25
6 snips
Jan 8, 2025 Interest rates are rising, shaking up homebuilders and regional banks as investors ponder the inflation impact of new tariffs. Devastating wildfires in Southern California threaten $10 billion in losses, creating an insurance crisis for many homeowners. Meanwhile, middle market lending shows resilience, with positive growth reported despite economic challenges. The complexities of global bond markets, highlighted by Japan's rising yields, and the performance of tech giants like NVIDIA add more layers to the financial landscape.
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Market Cracks
- Rate-sensitive sectors like homebuilders, regional banks, and small caps have plunged over the past month.
- These drops signal potential cracks in the market that could spread further.
Bearish Fed Minutes
- The recent Fed minutes suggest a bearish outlook for the markets, with two-thirds of the content supporting holding or raising rates.
- Steve Leisman's assessment further emphasizes this bearish sentiment.
Covering TLT and Industry Impact
- Consider covering some TLT due to its substantial movement.
- Rising rates can benefit certain industries like banks, but negatively impact others like tech.