Interest Rates Fall to 2025 Lows — but That's Not Helping the Stock Market
Interest rates have fallen to their lowest level of the year, but that hasn't given stocks much of a boost. The benchmark 10-year Treasury yield has declined since the start of the year, hovering around 4.3%, which in theory should give more juice to the stock market. However, the S&P 500 has sputtered, barely trading in the green since the start of the year, while previously reliable "Magnificent Seven" players have largely lagged the broader indexes.
- The decline in interest rates may be a symptom of a deeper economic anxiety, as investors are increasingly concerned about the impact of tariffs and trade policies on growth and inflation.
- Will the Federal Reserve's response to these concerns – cutting interest rates or tightening monetary policy – ultimately exacerbate the stock market's struggles, or find a way to revive investor confidence?