NEW YORK (dpa-AFX) – With high bond yields, investors on the US stock exchanges are increasingly questioning the opportunities for riskier equity investments. It is feared that the US Federal Reserve has not yet finished raising interest rates. The yield on ten-year US government bonds climbed above 4.6 percent on Wednesday, reaching its highest level since 2007.
Investors’ uncertainty was reflected in the market’s significantly falling indices until around two hours before the close of trading. Then some investors sensed buying opportunities. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) finally closed 0.20 percent weaker on Wednesday at 33,550.27 points. The market-wide S&P 500 closed with a gain of 0.02 percent to 4274.51 points. The technology-heavy selection index NASDAQ 100 gained 0.24 percent to 14,580.16 points.
JPMorgan strategist Marko Kolanovic maintains his defensive stance for the market. The index has now almost reached the price target he set for the S&P 500 of 4,200 points by the end of the year, he wrote in a recent study. Despite the strong early summer rally, macro fundamentals remained challenging and riskier assets are likely to face headwinds. To justify his assessment, Kolanovic referred to market valuations, investors’ positioning and also geopolitical aspects./ajxhe