Financial Perspectives
 

Market news

Market Analysis
January 18, 2022

Rising inflation is leading to concerns about consumer spending, with retail sales and consumer confidence falling in December. Learn how this may impact your investments in this week’s Market Analysis.

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2022 Outlook: 3 things to watch

We’re keeping an eye on three topics that are likely to have an impact on markets, the economy and investors.

How COVID continues to impact the markets and economy
January 4, 2022

Uncertainty surrounding the Omicron coronavirus variant is spurring market volatility. Does this put the economy's recovery at risk?

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How will inflation impact investors in 2022?
December 13, 2021

With inflation running hotter than it has in nearly 40 years, our investment strategists consider what investors need to know now.

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Understanding potential tax law changes
November 23, 2021

With the passage of Build Back Better legislation in the House, the bill now moves to the Senate for debate over wide-ranging changes to tax policy that could impact individuals and business owners.

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Daily market analysis

January 18 | 3:55 p.m. CT

Market update:

The S&P 500 lost 1.84% to close at 4,577.11 on Tuesday as government bond yields hit pandemic-era highs. The closely watched 2-year Treasury's yield broke above 1% for the first time since February 2020. And the benchmark 10-year note topped 1.87%, its highest since January 2020. Rising yields appears to be indicative of a bond market continuing to price in anticipated tightening by the Federal Reserve based on higher inflation and the Fed's guidance concerning the potential for multiple interest rate hikes this year, on top of winding down bond buying activity. Among S&P 500 companies reporting fourth quarter earnings so far, nearly 70% have posted results beating analysts expectations, according To FactSet.

Our take:

Consider a modest emphasis on equities, specifically large-size U.S. companies relative to international developed equities and core investment grade bonds, to provide broad sector representation to the economic recovery. Diversified portfolios should maintain modest bond exposure to U.S. corporate credit and non-agency, mortgage-backed securities within non-taxable strategies. We also emphasize opportunities in lower quality municipal bonds, reflecting improving state and local fundamentals. In certain objectives with larger allocations to fixed income, consider a modest preference for high yield securities and strategies benefiting from a steepening yield curve and rising inflation expectations.

Latest news & updates

2022 Investment Outlook

Company earnings continue to trend higher, providing valuation support and the basis for stock prices to move higher in 2022. Our investment strategists share important insights key to helping investors position their portfolios for the year ahead.

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Federal Reserve to taper bond purchases
January 12, 2021

With the Federal Reserve set to wrap up monthly asset purchases as early as March 2022, it’s likely that interest rate hikes will follow soon thereafter – perhaps as many as three in 2022. Find out what this may mean for markets and your investments.

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Is a market correction coming soon?
December 20, 2021

The S&P 500 hit 70 record highs in 2021, sparking questions in the minds of some investors about a possible market bubble.

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The debt ceiling debate comes to a head
December 15, 2021

Congress and the White House agree to increase the nation’s debt limit by $2.5 trillion. Learn what this means and why it matters.

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China update: Could real estate market risks spread?
December 2, 2021

Is there a risk the financial fallout from China’s real estate market could spill over to the broader global economy? Eric Freedman, Chief Investment Officer, assesses the situation.

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The infrastructure package takes center stage
November 9, 2021

Congress approves $1.2 trillion in spending for broadband, highways, bridges and railways – the largest infrastructure plan since President Eisenhower’s interstate highway program.

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Media mentions

1.12.22 | Yahoo! Finance | Video

3 Fed interest rate hikes in 2022 'not necessarily in the bag,' US Bank chief economist says

“The base case is that the economy is going to have another healthy year of growth,” U.S. Bank Chief Economist Tendayi Kapfidze told Yahoo Finance. “Probably we are going to get a number of Federal Reserve hikes, maybe some balance sheet tightening. But there’s a lot of risk and uncertainty to that outlook.”

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1.12.22 | Yahoo! Finance | Video

Inflation 'remains an open question,' strategist explains

U.S. Bank Senior Vice President and Public Markets Group Co-Head Lisa Erickson joins Yahoo Finance Live to discuss inflation data and volatility.

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1.11.22 | REUTERS | Article

TREASURIES – Yields retreat after Powell testimony

“Going forward, a major question besides rate hikes will be the timing, speed and magnitude of quantitative tightening, which could act as a key driver of higher longer-term bond yields,” said Bill Merz, head of fixed income research at U.S. Bank Wealth Management in Minneapolis.

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Investment outlook

2022 Investment Outlook

Company earnings continue to trend higher, providing valuation support and the basis for stock prices to move higher in 2022. Our investment strategists share important insights key to helping investors position their portfolios for the year ahead.

Get the outlook