Yuriy Matso: Fed rate hike follows Brent jump, real yields at highest since 2008

Yuriy Matso: Fed rate hike follows Brent jump, real yields at highest since 2008
Fed hikes after Brent surge, yields climb

Yuriy Matso highlights that the Federal Reserve increased interest rates the day after Brent crude oil reached $130 per barrel. Inflation expectations showed little movement, but the 10-year real yield climbed to 2.85%, marking its highest level since 2008.

He suggests that the Fed is working to bolster its credibility, with gold and utility stocks bearing the impact, and raises the question of whether the Nasdaq could be next.

Matso has previously examined the historical seasonality of September and its possible implications for financial markets in an earlier analysis. He also noted that Nasdaq volatility and range contraction reached historic lows following a 9.3% rebound. These observations add context to his latest comments on policy moves and market reactions.

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