Stocks and bonds are moving in opposite directions, but they may both be signs investors are predicting an interest rate cut.
 | MON, FEB 10, 2020 | | | | DOW | | NAME | LAST | CHG | %CHG | | MSFT | 188.70 | +4.81 | +2.62% | | AAPL | 321.55 | +1.52 | +0.47% | | INTC | 66.39 | +0.37 | +0.56% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | F | 8.06 | -0.05 | -0.62% | | AMD | 52.26 | +2.53 | +5.09% | | GE | 12.91 | +0.08 | +0.62% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AMD | 52.26 | +2.53 | +5.09% | | MSFT | 188.70 | +4.81 | +2.62% | | AAPL | 321.55 | +1.52 | +0.47% | |
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Stocks are higher since the coronavirus outbreak began, but bond yields are lower.
That may look like a mixed signal, but as CNBC's Patti Domm writes, there's a common message: Both markets are betting that the scare could prompt the Federal Reserve to lower interest rates to thwart the virus's effects on economic growth.
The U.S. economy may grow by only 1.2% in the first quarter because of the cornonavirus, writes CNBC senior economics reporter Steve Liesman. That's according to a CNBC survey of 11 forecasters over the weekend, and it's down nearly a point from the fourth quarter.
 Fed Chairman Jerome Powell will likely be asked about the coronavirus when he begins two days of congressional testimony at 10 a.m. ET tomorrow. CNBC's Jeff Cox writes that Powell will most likely note that it doesn't change the fundamental outlook for the U.S. economy. Stocks rose again on Monday, with the S&P and the Nasdaq setting new highs. The index got a boost as Amazon shares topped $2,100 for the first time. Meantime, the coronavirus virus remains unpredictable. "The duration of this virus will determine how long businesses will be sidelined," said Bruce Bittles, chief investment strategist at Baird, "and what the effect will be on China and the global economy." Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world. |
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