Why is the US 10-year bond yield rising and how does this affect stock markets, gold and the euro?

Why is the US 10-year bond yield rising and how does this affect stock markets, gold and the euro?

According to a report by finanzmarktwelt.de, the stock markets, gold and the euro are under pressure. The US labor market data with many new jobs and sharply rising hourly wages have had a strong impact on the financial markets. In addition, Federal Reserve Chairman Jerome Powell's interview made it clear that interest rates will not be lowered for the time being because the US economy is very strong. This has led to a rise in bond yields and a fall in gold, oil prices and the euro. The US stock markets also started the week weaker, with tech companies like Nvidia performing positively.

Jerome Powell's statements and the strong US economic data have a direct impact on the financial markets. The rise in bond yields and the fall in gold, oil prices and the euro are a direct response to expectations that interest rates will remain high. This could affect long-term investments in stocks and commodities as the incentive for risky investments decreases.

Additionally, the strength of tech companies highlights a potential scenario in which stock markets ignore Jerome Powell's hawkish statements. This could lead to a decoupling of stock markets from the Fed's interest rate decisions.

Overall, the financial markets are currently heavily influenced by developments in the USA and it is important to closely monitor the effects on various asset classes. The Fed's interest rate policy will continue to play a crucial role in the development of the markets in the coming months.