{"id":2472641,"date":"2023-09-07T14:40:15","date_gmt":"2023-09-07T18:40:15","guid":{"rendered":"https:\/\/www.valuewalk.com\/?p=2472641"},"modified":"2023-09-07T14:40:18","modified_gmt":"2023-09-07T18:40:18","slug":"interest-rates-are-once-again-influencing-market-swings","status":"publish","type":"post","link":"https:\/\/www.valuewalk.com\/interest-rates-are-once-again-influencing-market-swings\/","title":{"rendered":"Interest Rates Are Once Again Influencing Market Swings"},"content":{"rendered":"\n<p>In his<em> <strong>Daily Market Notes<\/strong><\/em> report&nbsp;to investors,&nbsp;Louis Navellier wrote:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A Chill Through The Tech Sector<\/h2>\n\n\n\n<p>Tech is leading the market lower again, the Dow shaking it off early, and bonds are flat.<\/p>\n\n\n\n<p>The news that China has asked government workers to not bring their Apple iPhones to work has put a chill through the tech sector. Apple (NASDAQ:AAPL) <a href=\"https:\/\/www.valuewalk.com\/the-magnificent-7-are-pulling-down-the-rest-of-the-market\/\">stock is down<\/a> 7.2% since the news started circulating. Suppliers to Apple are taking heat as well.<\/p>\n\n\n\n<div class=\"ca-widget\" data-token=\"k8f5c9ac62a4\"><\/div><script async defer src=\"https:\/\/secure.money.com\/embeds\/embedder.js?v=1\"><\/script>\n\n\n\n<p>The story is China is concerned about security which is clearly a retribution of US limits on Chinese technology for the same reason. Given how many US companies have material business in China, an escalation&nbsp;of a trade war could have serious&nbsp;consequences, but Apple&#8217;s massive size would dwarf the impact of most other players, and for now, it is very technology-oriented. It&#8217;s unlikely that Starbucks (NASDAQ:SBUX) could get swept up in the same way.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Interest Rates Swing The Market<\/h2>\n\n\n\n<p>Swinging the market once again are <a href=\"https:\/\/www.valuewalk.com\/higher-interest-rates-weigh-on-stocks\/\">interest rates<\/a>, where the 10yr spiked early to 4.31%, bringing fears of the mid-August highs, and low for stocks, after dipping overnight, but after the first hour and&nbsp;a half of trading had dropped back to 4.28%, after closing at 4.29% yesterday. The 2yr did much the same, gapping above 5.03%, and then down to 4.99% below yesterday&#8217;s 5.02%&nbsp; These swings pushed the US dollar index around, running up to 105.1 and then pulling back and gold swung from gains to losses as well.<\/p>\n\n\n\n<p>The one steady level is crude oil which moved little and is where it was yesterday; $87.50, and natural gas is higher.<\/p>\n\n\n\n<p>Part of the volatility comes from job data, where initial&nbsp;jobless claims, expected to rise modestly, fell to the lowest since March,&nbsp;as did continuing claims. Unit labor costs, which have been falling, also rose. These labor trends were the big factor in the interest rate swings, as it&#8217;s definitely&nbsp;a focus of the Fed. On the bright side, the strength in labor is supportive of the soft landing outlook.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Buying Opportunity<\/h2>\n\n\n\n<p>As the day moves on the indexes are drifting higher and interest rates lower, with defensive sectors the strongest on the day. With the <a href=\"https:\/\/www.valuewalk.com\/sp-500-bad-is-not-the-new-good\/\">S&amp;P 500<\/a> still up over 16% YTD and the NASDAQ +32%, some downward volatility is inevitable, especially in a traditionally seasonally weak month. It is likely that in the 4th quarter, we&#8217;ll look back on any major pullbacks we&#8217;ll be seeing in the weeks ahead as buying opportunities if the soft landing forecasts hold.&nbsp; &nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Coffee Beans: Metalhead<\/h2>\n\n\n\n<p>A music-loving dog was returned to her family after escaping from her home and sneaking into a Metallica concert in California. The owners said the dog is used to loud music being played in the house. Source: UPI. <a href=\"https:\/\/www.upi.com\/Odd_News\/2023\/09\/05\/Metallica-dog-Inglewood-California\/4391693932591\/\" rel=\"nofollow\" target=\"_blank\">See the full story here<\/a>.<\/p>\n ","protected":false},"excerpt":{"rendered":"<p>In his Daily Market Notes report&nbsp;to investors,&nbsp;Louis Navellier wrote: A Chill Through The Tech Sector Tech is leading the market &#8230; <a title=\"Interest Rates Are Once Again Influencing Market Swings\" class=\"read-more\" href=\"https:\/\/www.valuewalk.com\/interest-rates-are-once-again-influencing-market-swings\/\" aria-label=\"More on Interest Rates Are Once Again Influencing Market Swings\">Read more<\/a><\/p>\n","protected":false},"author":21886,"featured_media":2466069,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6640],"tags":[658975,659187,659238,646568,651290,659801,645498],"states":[],"acf":[],"modified_by":"Umair Tariq","_links":{"self":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2472641"}],"collection":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/users\/21886"}],"replies":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/comments?post=2472641"}],"version-history":[{"count":4,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2472641\/revisions"}],"predecessor-version":[{"id":2472645,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2472641\/revisions\/2472645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media\/2466069"}],"wp:attachment":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media?parent=2472641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/categories?post=2472641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/tags?post=2472641"},{"taxonomy":"states","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/states?post=2472641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}