Technology shares spurred a rally in stocks after China ratcheted up stimulus measures to combat slowing growth. Treasuries fell and the dollar advanced.
The 10-year Treasury yield rose to arou
“The market today is reacting favorably to the second largest economy in the world actually doing stimulus rather than trying to throttle their economy,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Co. “Tech has a lot to do with what happens in China also. The tech sector has more revenues coming from China than any other sector in the U.S.”
The potential stimulus in China and warm welcome it received from markets reflects the delicate balance underpinning 2019’s risk-asset rebound: The same weak macro data that prompted a sell-off at the end of last year has the potential to spur looser monetary policies and therefore ignite a rally. Plenty of risks are clouding the outlook, not least the ongoing U.S. shutdown and the increasingly frantic countdown to Brexit. Investors must also factor in corporate earnings as the results season get
