Ten-year U.S. Treasury yields fell after the initial news, with softer rates supporting a less aggressive Fed rate path. However, yields ended the session higher, reflecting the impact of rates on market sentiment toward the Fed rate path.
Crypto-related stocks fueled the Nasdaq rally amid continued speculation about a US Strategic Bitcoin (BTC) Reserve (SBR). MicroStrategy (MSTR) rose 11.61%, while Marathon Holdings (MARA) gained 4.63%. Bitcoin finished 3.98% higher on Monday, closing above the $100,000 level for the first time since December 18.
US services PMI signals a softer stance from the Fed
On Monday, final PMI data from S&P Global Services attracted interest. The services PMI rose to 56.8 in December, up from 56.1 in November but down from the preliminary 58.5.
The December survey showed that cost pressures eased as service providers increased their workforce for the first time in five months. Softer price developments hampered modest employment growth and supported expectations for a less aggressive interest rate path by the Fed.
Lower financing costs could boost corporate profits and stock valuations.
The Biden administration is targeting Chinese companies
On Monday, January 6, the Biden administration took aim at Chinese companies in its final days in office. The government has added several prominent Chinese companies to the list Section 1260H Listincluding Tencent Holdings Limited, China National Oil Corporation’s CNOOC and Cosco Shipping Holdings.