5 from 5i: Rising rates may signal significant market shifts ahead

Barkha Rani Mar 05, 2021
Headline image for 5 from 5i: Rising rates may signal significant market shifts ahead

Market View

The US 10-year treasury yield has increased rapidly since the beginning of February and is hitting a new one-year high at 1.62%. This has set off inflation fears and equity sell-off. Comments by Federal Reserve Chair Jerome Powell did little help concerning investors’ fears. OPEC+ agreed to not increase supply helping oil prices touch their highest in a year. Gold prices fell while the US dollar strengthened. The Canadian dollar was 78.81. U.S. S&P500 ended the week down 1.5%, while the TSX ended the week down 0.6%.

It was a mix of reds and greens this week as investors rotated away from relatively expensive sectors such as technology and healthcare. Energy rose 7.2%, consumer staples gained 3.6%, while financials added 2.1%. Healthcare slid the highest by 10.1%, technology gave away 8.5%, and materials declined by 1.7%. The most heavily traded shares by volume were Bombardier Inc, Suncor Energy, and Supreme Cannabis.

5 from 5i

Here are five reads we found interesting last week:

Happy Reading & Stay Safe!


Thinking about becoming a 5i Research Member?  

Do your 2021 goals include growth in your DIY Investments?  If so, no need to go at it alone. Start your free trial today, and see for yourself how 5i Research can help you elevate your Investment Game. 

Free Trial Button


Disclosure: Please note that the author does not hold a financial or other interest in stocks or funds mentioned.

1 comment


Login to post a comment.

Mar 9, 2021
Surge in Stocks(Tech), drop in 10 year yield, and same in reverse
If I want to buy a hi tech stock and will not do it bec US Treasury have gone up a bit in yield.
Pls explain the real reasons behind this famous dictum, rise in yield results in drop of stock prices.