Analysis – Banking woes, Fed keep investors on edge amid jittery U.S. stocks

“It’s almost like the Prisoner’s Dilemma, if everyone agrees that they won’t withdraw their deposits, then everything should be fine, but if only One person who decided they were T. Rowe Price’s multi-asset division capital markets strategist Tim Murray said he was underweight equities and focused on money market accounts with yields comparable to U.S. Treasuries.

Uncertainty over the Fed’s intentions is amplifying investor hesitation in stocks and triggering wild swings in U.S. government bond prices. Fed rate hike basis points on Wednesday but signaled imminent pause for further increases. Investors piled into U.S. Treasuries Safe haven, pushing the two-year Treasury yield, which closely mirrors Fed policy expectations, to 3.

Fed chief Tony Rodriguez said further bank failures could mean earlier rate cuts as weak financial conditions keep the Fed Can ease the fight against inflation Nuveen’s fixed income strategy. Futures contracts point to the Fed starting to cut rates before the end of the year. Rodriguez said, Lower interest rates will make dividend-paying stocks and some riskier assets, such as high-quality bonds below investment grade, more attractive. “It makes sense to take risks in these areas to exploit the weaknesses we see now.”

Despite concerns in the banking sector, Risk assets are somewhat resilient, said Jason England, global bond portfolio manager at Janus Henderson Investors. this2008 Standard & Poor’s 11 Up 3.4% this year, though well off early February highs , up 1% for the week, helped by a rebound in technology stocks.

“If inflation falls due to banking outages, and you create austerity for homeowners, then suddenly the Fed has done its job, “He said.

UK expects long-term bond yields to rise from current levels, making short-term bonds and money market funds more attractive.

Investors may continue to bid for another Prepare yourself for the possibility of dramatic failure until Wealth Management Chief Investment Officer Katie Nixon at 267267 Northern Trust

(NASDAQ: 267NTRS

), who focuses on tech stock balance sheets with “fortresses”. ”

“Right now it’s a crisis of confidence and everyone is looking for direction,” she said. 166