US tech stocks continue to rally even in the face of rising short-term bond yields which suggests an eventual Fed Cash Rate of ~5% is fully baked into today’s prices. MM is still overweight the sector although we are looking to take some profits into further strength.
- Our preferred scenario remains the NASDAQ 100 will eventually test the 13,500 area, around 6% above this morning’s close.
MM remains mildly bullish on US equities through February
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US bond yields have been rallying strongly since the combination of extremely strong employment and inflation data, the current solid economic backdrop looks set to take short-term US rates above 2022’s high, testing the 5% area in the process.
- We cannot ignore the current hawkish Fed rhetoric and strong economic data, short-term US yields look destined for 5%.
MM is bullish on the short-term bond yields’ short-term
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