Market News 8/06

Markets

The yield on the 10-year U.S. Treasury note has risen significantly, approaching levels not seen in over ten years. This increase is driven by growing optimism in the economy, with investors betting that sustained economic strength could lead to higher interest rates for an extended period.

Investors bet that high rates will linger

The 10-year Treasury yield settled at 4.060% on Friday, slipping slightly after a mixed monthly jobs report. Nevertheless, it remained higher than the previous week's 3.968% and was close to its 14-year high of 4.231% from October.

Despite shorter-term bond yields remaining stagnant, longer-term Treasury yields have been on the rise. This increase impacts the cost of various things, from mortgages to stocks. The reason behind this trend is the belief among investors that inflation is cooling down, and the economy will continue to show resilience. Consequently, they anticipate the Federal Reserve to halt its interest rate hikes and maintain rates at their current levels until the end of the year. As evidence of this trend, the yield on the 2-year Treasury note closed at 4.791%, lower than the 4.895% recorded a week earlier.

This market behavior is referred to as a "bear steepening" pattern because it involves falling bond prices and increasing longer-term yields relative to short-term ones. Usually, this would result in a wider gap between the two. However, in the past, shorter-term Treasury yields rose above longer-term ones, which inverted the typical yield curve. This occurred due to investors expecting the Federal Reserve to raise rates to combat inflation and then lower them again during a recession.

Politics

Trump indictment: Where is mark meadows?

During the time when Donald Trump attempted to overturn the 2020 election results, Mark Meadows served as the White House chief of staff. Despite playing a significant role in the events surrounding the election, Meadows is given a minor mention in the document outlining the charges against the former president.

Meadows had frequent conversations with Trump, working on various initiatives to challenge the election outcome while also trying to restrain certain efforts. However, according to congressional testimony, he was slow to respond on January 6, 2021, when Trump supporters stormed the Capitol in an attempt to disrupt the certification of President Biden's victory. The House Jan. 6 committee's report suggests that Meadows might have been involved in a conspiracy with other Trump confidants to hinder Biden's win.

In a recent indictment by a federal grand jury, Meadows is mentioned only a few times, leaving the extent of his cooperation with prosecutors uncertain. The indictment identifies six co-conspirators, and Meadows is not among them. Five of the individuals, though unnamed, are clearly linked to a circle of attorneys and advisers, including Trump's personal lawyer, Rudy Giuliani. The sixth person is described as a political consultant without revealing their identity.

Meadows has not responded to requests for comment, but his attorney, George Terwilliger, stated earlier that Meadows is committed to telling the truth. While Meadows did not fully cooperate with the Jan. 6 committee, he did testify before the grand jury investigating Trump's actions related to the Capitol attack.

Entertainment

Barbie surpasses 1 Billion at the box office

Greta Gerwig's film "Barbie" has become a massive success, surpassing the billion-dollar mark in global box-office receipts, as reported by research firm Comscore. This achievement marks a significant milestone as it is now the first U.S. film directed by a woman to reach such a financial milestone.

With a total gross of approximately $1.03 billion in both domestic and international markets, "Barbie" is one of only a few films to achieve this feat since the pandemic began. Alongside Christopher Nolan's "Oppenheimer," which has grossed $552.9 million globally, these films have provided a glimmer of hope for the movie industry amidst ongoing labor disputes and changing consumer viewing habits, with more people opting to stream movies at home.

"Barbie" has captured the hearts of audiences through a combination of clever consumer marketing and a resonating storyline. The movie's focus on the Mattel doll and her journey of self-discovery as she ventures out of a pink utopia has struck a chord with viewers, who have flocked to theaters across the U.S. to see the film.

In the wake of the pandemic, only a handful of other films have achieved billion-dollar box-office sales, including "The Super Mario Bros. Movie," "Avatar: The Way of Water," "Spider-Man: No Way Home," "Top Gun: Maverick," and "Jurassic World Dominion."

Sports

The Two-Year Slide That Ended the U.S. Women’s Soccer Dynasty

The U.S. women's soccer team had been a dominant force, with back-to-back World Cup victories and an impressive 44-game unbeaten streak leading into the 2021 Tokyo Olympics. However, their seemingly unbreakable foundation began to crumble during the Olympic opener when they suffered a surprising 3-0 defeat against Sweden. Initially considered a fluke, this loss foreshadowed a significant decline for the U.S. team.

This downward spiral reached its culmination on a fateful day when Sweden dealt the final blow. The Americans were defeated in a penalty shootout after a goalless draw, resulting in an early exit for the U.S. in the World Cup's Round of 16. This marked the end of their dynasty, and it was evident that the once dominant team was no longer able to maintain their previous level of success.