Last month, the Federal Reserve’s large rate cut of 50 basis points should have helped lower mortgage rates. In the last month, however, a strong job report hurt bond markets. In addition, inflation is still high.
U.S. Treasury bond yields rose in response. Gold prices are at all-time highs, too. Investors who bet on yields falling lost money. They may sell their 20+ year bond ETF (TLT) and the 7-10 year bond (IEF) to limit losses.
Mortgage rates are now at the highest levels not seen since August. They increased for four straight weeks. The 30-year fixed interest rate is up to 6.54%. These costs hurt the middle class. The higher insurance costs worsen costs. Investors should watch insurance firms like Chubb (CB), Prudential (PRU), and Allstate (ALL).
In the cryptocurrency market, bitcoin closed at $68,190. Together with rising gold prices, BTC could continue upward. The next rally price is in the range of $69,000 - $70,000.
In the biotech sector, Viking Therapeutics (VKTX) may add to its 21% jump from yesterday. The firm posted a cash balance of $930 million in Q3. An FDA feedback for VK2735, which is similar to Eli Lilly’s (LLY) weight loss drug Zepboundf, is pending. As a result, it expects the drug to reach late-stage development.
